A top House Republican wants Congress to lower the political temperature in Washington by cooperating on investigating the collapse of Silicon Valley Bank and avoiding “drama” on increasing the debt ceiling.
(Bloomberg) — A top House Republican wants Congress to lower the political temperature in Washington by cooperating on investigating the collapse of Silicon Valley Bank and avoiding “drama” on increasing the debt ceiling.
People should hold off on assigning blame while Congress and watchdogs investigate the cause of the bank’s failure, House Financial Services Chairman Patrick McHenry said Thursday. It’s “natural” to first look at the bank’s management and the bank regulators, but the “full set of facts” is not yet known, he said.
“When people jump to these conclusions at this stage of the game — a week in on this really stressed moment for our banking system — it’s unhelpful and quite politically hackish,” McHenry said on Bloomberg Television’s “Balance of Power.”
The North Carolina Republican’s comments come as members of both parties are rushing to assign fault in the demise of Silvergate Capital Corp., Silicon Valley Bank and Signature Bank in the past month, rattling the banking system worldwide. Democrats say the root cause is a 2018 rollback of regulation for regional banks like Silicon Valley. Republicans blame President Joe Biden’s economic policies and “woke” ideology at the bank.
The tension sets up the potential for an even more explosive fight over the federal budget and increasing the debt ceiling later this year. McHenry, an ally of House Speaker Kevin McCarthy and widely trusted among House Republicans, is seen as a key voice in navigating both the bank situation and debt ceiling debate.
His view for calm is bipartisan. Senate Finance Chairman Ron Wyden also urged Congress to increase the debt ceiling without turmoil at a hearing Thursday with Treasury Secretary Janet Yellen.
“Nerves are frayed at the moment,” Wyden, an Oregon Democrat, said. “One of the most important steps the Congress can take now is make sure there are no questions about the full faith and credit of the United States.”
McHenry said that his committee will investigate the collapse of Silicon Valley Bank, including the bank’s management, and how regional federal reserve branches are operating.
He stopped short of committing to legislation that would overhaul banking regulations or insure all federal deposits. He also expressed skepticism about Senator Elizabeth Warren’s idea to name an independent, unbiased investigator to look into regional bank troubles.
“Good luck, everybody has a perspective,” he said.
–With assistance from Annmarie Hordern and Joe Mathieu.
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