Source: United States Senator Kevin Cramer (R-ND)
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BISMARCK – U.S. Senator Kevin Cramer (R-ND), member of the Banking Committee, reiterated his stance on the Silicon Valley Bank (SVB) collapse and the Federal Reserve System’s insufficient supervision of the company during a WZFG “What’s on Your Mind” radio segment this morning. The comments are in response to a newly published report which reviewed the events.
“How do more regulations keep a referee, for example, from being any better? If you never blow the whistle and never put up a yellow card or a red card and discipline when you see a violation, there’s going to be more violations. So, we need to enforce existing laws,” said Senator Cramer. “SVB was run poorly. The regulators knew it, they identified it, and they just didn’t take strong enough action.”
Background:
The report acknowledged SVB’s March 10, 2023 collapse was a culmination of “textbook mismanagement by the bank” and supervisory failures by the Fed: “When supervisors did identify vulnerabilities, they did not take sufficient steps to ensure that Silicon Valley Bank fixed those problems quickly enough.”
Senator Cramer issued a statement on the bank’s failure last month and discouraged regulators from making knee-jerk reactions. He also voiced support for addressing SVB’s collapse in a localized way, citing the uniqueness of its operations.