U.S. Senate panel calls on SVB, Signature Bank ex-CEOs to testify

Illustration shows destroyed SVB (Silicon Valley Bank) logo and U.S. flag
Destroyed SVB (Silicon Valley Bank) logo and U.S. flag is seen in this illustration taken March 13, 2023. REUTERS/Dado Ruvic

WASHINGTON, March 23 (Reuters) - The U.S. Senate Banking Committee on Thursday called on the former chief executives of Silicon Vally Bank (SVB)(SBNY.O) and Signature Bank (SIVB.O) to testify as lawmakers weigh possible action after the banks' failures triggered market turmoil.

"You must answer for the bank's downfall," the panel's Democratic chairman and ranking Republican wrote in separate letters to former Silicon Valley Bank Chief Executive Gregory Becker and former Signature Bank CEO Joseph DePaolo.

Senator Sherrod Brown, the panel's Democratic chairman, and Senator Tim Scott, its top Republican, asked the former bank chiefs to testify at the hearing Tuesday with federal regulators or at a future date.

Representatives for Becker and DePaolo as well as the banks could not be immediately reached for comment.

The Senate panel on Monday announced the first in a series of hearings following the banks' collapse. The U.S. House of Representatives financial Services Committee is scheduled to hold a separate hearing March 29.

Reporting by Susan Heavey; editing by Jason Neely and Doina Chiacu

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