I want to update you on two big takeaways following the second hearing over the Silicon Valley Bank collapse in the House Financial Services Committee:
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We must not penalize small “mom and pop” rural banks – that have on average 95% of their deposits ensured – to pay for the risky lending behavior of banks in New York and California.
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The FDIC must take a more serious look at some of the risk-based calculations to ensure this never happens again.
Bottomline: Silicon Valley and Signature Banks failed because of bank mismanagement, but now, D.C. bureaucrats are trying to seize the moment to push a red tape laden agenda that will hurt rural America.
Watch this 5-minute video on my exchange with the Federal Deposit Insurance Corporation (FDIC) and the Board of Governors of the Federal Reserve for more:
As your fighter in Congress, I will continue working to make sure Iowans don’t find themselves on the hook paying for risky banks like Silicon Valley Bank.