Politics

Congressman Pressures Failed Bank Execs To Own Up To Debacle. One Cracks, Two Dodge

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Nicole Silverio Media Reporter
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Republican Michigan Rep. Bill Huizenga pressured three bank executives to “take responsibility” for the collapse of their large bank.

Former Silicon Valley Bank CEO Greg Becker, Signature Bank CEO Scott Shay and First Republic Bank CEO Michael Roffler addressed the collapses of their banks during a House Financial Services subcommittee hearing Wednesday. The representative asked each executive if they hold themselves accountable for the banking failures.

“I’m gonna ask you what I think are two of the most important questions, frankly, I’ll go down the line asking you this. First is whether you take responsibility for the failure of your bank,” Huizenga said.

“Congressman, as CEO, I think you have to take responsibility for the ultimate outcome of your institution,” Becker answered.

“As Chairman of the Board, I think I did a responsible role throughout to fulfill my duties,” Shay said.

“Do you accept the responsibility for your failure or do you believe it was other management?” Huizenga asked Shay.

Shay said he handled the bank responsibly, to which Huizenga said he “take that as a no.” Roffler said the bank collapses were “unforeseeable” and he was responsible for supporting his employees and those impacted by the collapse.

“So that also sounds like a no. So congratulations, Mr. Becker, you’re the only one to man up and actually take responsibility for that,” the congressman said.

He then asked the executives what they would do differently in hindsight. Becker said the bank’s executives “made the best decisions” based on the facts and information presented to them. (RELATED: John Fetterman Struggles With Asking Basic Questions To Disgraced Silicon Valley Bank Executive) 

Huizenga mentioned a letter Becker received from regulators in August 2022 warning about different types risk. The representative asked Becker to clarify that the risk was not an issue for the regulators, and questioned whether the regulators had been in communication with the bank.

Becker claimed he was “incredibly responsive” to the feedback from regulators prior to Silicon Valley Bank’s collapse.