Fed Chair Powell criticized by Sen. Warren for bank failures

by | Apr 19, 2023 | Bank Failures | 22 comments




(15 Mar 2023) Sen. Elizabeth Warren, D-Mass., blasted Fed Chair Jerome Powell on Wednesday over the bank runs involving Silicon Valley Bank and Signature Bank.

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On Tuesday, Senator Elizabeth Warren had a heated exchange with Federal Reserve Chair Jerome Powell over his handling of bank failures during the COVID-19 pandemic. During the Senate Banking Committee hearing, the Senator accused the Fed of being too lenient with large banks and criticized the lack of accountability both for those banks and for Powell himself.

The Senator focused on the Fed’s decision to ease regulations on the largest banks earlier this year after the pandemic hit, arguing that the move was in conflict with the Fed’s mandate to promote financial stability. She pointed out that the large banks had already been given a number of regulatory breaks as a result of the 2018 Dodd-Frank law, and yet, despite these advantages, many of these banks still struggled during the pandemic, with some even needing to use the Fed’s lending facilities to stay afloat.

Senator Warren also raised concerns over the Fed’s role in the collapse of Archegos Capital, a family office that lost billions of dollars, causing significant losses for some of the largest banks in the world. She questioned Powell’s decision not to investigate the matter further, and accused him of being too soft on these banks, saying “It just doesn’t look like you’re doing your job”.

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Powell, in turn, defended his actions, saying that the Fed had been monitoring the banks closely and had acted accordingly to prevent a broader financial crisis. He also argued that while the large banks had been given some regulatory relief, they were still subjected to rigorous scrutiny and testing.

This exchange is just one example of Senator Warren’s ongoing scrutiny of the financial sector, and her advocacy for consumers and regular Americans who she believes have been wrongly disadvantaged by the current system. It also highlights some of the ongoing tensions between those who believe that the financial sector needs to be more tightly regulated and those who argue that excessive regulation can stifle economic growth.

Overall, Senator Warren’s criticism of the Fed’s handling of the pandemic and its aftermath is likely to continue, as she seeks to hold financial institutions to account and ensure that the public interest is protected. Whether or not the Fed will make any significant changes to its policies and approach remains to be seen, but the Senator’s sharp questioning and public statements may prompt some much-needed debates on this important issue.

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22 Comments

  1. eric kanter

    Warren doesn't know jack.

  2. Akash Vijay

    Easy to criticise when you have literally no responsibility and all you do is engage in unnecessarily provocative rhetoric. Maybe she should look at her own party and at congress who also voted to enact the same decisions instead of pinning it on a man who single-handedly protected the country and the economy from a global financial crash and kept it going during the dark days of COVID-19. What has Sen. Warren ever accomplished?

  3. Marc P

    She is an ignorant fool, combine her IQ with Kamala Harris it would still be under 100

  4. My GⓄⓄgle

    No, senator. This inflation is tied to corporate attempts to recover massive losses they incurred during the Covid shutdown which lasted almost two years. That is why the Fed is not gaining any traction at all even though they've raised interest rates so many times. Crippling inflation will not stop unless Congress steps in and makes this artificial price gouging illegal or the economy collapses completely with dozens and dozens of failed banks.

  5. Eric Calabrese

    Defund the fed, lock all of these people
    Up including elizabeth. They’re all guilty of why we’re here

  6. Joe Cap

    She is part of the problem, not the solution.

  7. Joe Cap

    This is 100% on Democrat spending causing inflation.

  8. FerrariDan

    I can't stand Warren, but Jerome Powell is the chief architect of todays bank failures. He sat on his hands between Q4 2020 and Q1 2022 and watch 2% mortgages cause a housing feeding frenzy, thus causing rampant housing inflation. He woke up last spring 2022, and said hey, maybe I need to wake up and do my job. Then jacks rates through the roof and now you see where we are. It is time for you to retire. Powell gets my first vote of no confidence.

  9. wyatt1153

    This is what deregulation gets you.

  10. C 2

    She lied about being Native American. She lied about Bernie being a sexist. She lied about 2020 being most secure election ever. She's a known LIAR

  11. NO파벌

    Layer Powell. He has to be fired

  12. iMageddon F

    Powell could not solve it because Biden spent too much, and Yellen is not able to control budget for taking care of US debts. Warren should go back to school and learn economics.

  13. Nope No

    First time Pocahontas is right (about FED). If that "rightness" is will continue, we can't tell

  14. Michael Kutchara

    Look, she’s moving her lips, she’s lying

  15. TraderTimmy

    You can mock her all you want, but she is correct in what she has said here. I like Powell, but I think he has been too easy on banks. But it’s not all his fault. Congress and Trump deregulated banks too. Big mistake.

  16. The Capitalist 読 Das Kapital

    Stop acting, Beth. We all know you're soft-handed on the super rich, but hard-handed on mid-class workers.

  17. Muff Man

    Brandon and his regime are corrupt and incompetent. Impeach Benedict Brandon!!!

  18. tankcvc101

    Fire j Powell

  19. Normalized Audio

    SVB can't even add up their ledgers. They all eat the free lunch and forget to do their job.

  20. SupaEMT134

    Always a victim mentality with these ppl

  21. SupaEMT134

    Just stop.

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