Senator Elizabeth Warren tweeted Tuesday morning that Federal Reserve Chairman Jerome Powell “must recuse himself” from the Fed’s investigation into the demise of Silicon Valley Bank.
“Fed Chair Powell’s actions directly contributed to these bank failures. For the Fed’s inquiry to have credibility, Powell must recuse himself from this internal review.”
Fed Chair Powell’s actions directly contributed to these bank failures. For the Fed’s inquiry to have credibility, Powell must recuse himself from this internal review. It’s appropriate for Vice Chair for Supervision Barr to have the independence necessary to do his job.
— Elizabeth Warren (@SenWarren) March 14, 2023
On Monday, the Fed said it was launching an internal review of its supervision and regulation of Silicon Valley Bank.
The review would be led by Vice Chair for Supervision Michael Barr. A report would be issued as early as May 1. The collapse of SVB, which the San Francisco Fed supervised, was the largest bank failure since the GFC.
“The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve,” Fed Chair Jerome Powell said in a statement.
Warren said: “It’s appropriate for Vice Chair for Supervision Barr to have the independence necessary to do his job”
Meanwhile, many folks on Twitter responded negatively to the senator’s tweet, indicating blame resides on lawmakers.
“Fed was reacting to the inflation you guys help cause, but ok,” one person said.
Another person said, “Warren should resign. She tried to bring down the crypto banks’ $SI & $SBNY networks SEN & Signet, triggering regional bank runs as a residual effect. She’s intellectually incapable of handling her responsibilities.”
“It happened on your watch,” someone else said.
… and, of course, the blame game begins.
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