#SiliconValleyBank #SignatureBank #banking
The Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), and the Ranking Member of the House Financial Services Committee, Maxine Waters (CA-43), hold a bipartisan hearing with federal financial regulators in response to the failures of Silicon Valley Bank (SVB) and Signature Bank.

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LEARN MORE ABOUT: Bank Failures

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On February 26th, two major banks, Silicon Valley Bank and Signature Bank, appeared before the House Subcommittee on Oversight and Investigations to answer questions and address concerns about their handling of bank failures.

The hearing was convened in response to a ProPublica investigation that revealed startling information about these banks’ practices. According to ProPublica, Silicon Valley Bank and Signature Bank had a habit of abandoning their customers when those customers were struggling, instead of offering them the assistance they needed to stay afloat.

For many small businesses, banks are critical partners in their success. Banks provide the financial support and stability that businesses need to grow and thrive. But for some businesses, that support can be hard to come by. When businesses are struggling, banks often see them as liabilities. Instead of helping them, banks cut them loose.

This was the case with many of Silicon Valley Bank and Signature Bank’s customers, according to the ProPublica report. In some cases, the banks refused to work with customers who were struggling to make their loan payments. In other cases, the banks simply closed the accounts of customers who weren’t profitable enough.

This kind of behavior not only harms the businesses themselves, but it also harms the broader economy. When small businesses fail, jobs are lost, and communities suffer. That’s why it’s so important for banks like Silicon Valley Bank and Signature Bank to be held accountable for their actions.

During the hearing, representatives from both banks acknowledged that they could do more to help struggling businesses. They promised to take steps to improve their practices and to better support their customers.

However, some members of the Subcommittee were skeptical of these promises. They pointed out that businesses need more than just words. They need action. And they need it now.

The hearing highlighted the urgent need for greater oversight of banks’ practices, particularly in the wake of the COVID-19 pandemic, which has caused unprecedented economic disruption. The Subcommittee must continue to hold banks accountable for their actions and ensure that they are doing everything in their power to support struggling businesses.

In the end, the fate of small businesses and the broader economy rests on the actions of banks like Silicon Valley Bank and Signature Bank. It’s up to these institutions to step up and provide the support that businesses need to survive and thrive. If they fail to do so, the consequences could be catastrophic.