U.S. House Financial Services chair to seek documents, hold hearing amid bank collapses – report

WASHINGTON (Reuters) – The head of the U.S. House Financial Services Committee said he would request documents and hold a hearing after the collapse of two U.S. banks raised concerns about the banking sector and roiled world markets, according to a media report on Tuesday.

In an interview with Punchbowl News, Representative Patrick McHenry did not say when the panel would meet or what specific documentation lawmakers would seek, but said he wanted to hear from both the banks and regulators.

“You have the decisions of the institution, and you have decisions of the supervisors,” the Republican committee chairman told the outlet late on Monday. “One is a management failure. The other is supervisory failure. And were going to look into those things.”

McHenry spoke after briefing Republicans, who control the House of Representatives, about the weekend collapse of Silicon Valley Bank and Signature Bank, which continued to weigh on investors on Tuesday.

U.S. President Joe Biden has sought to soothe the markets, issuing a statement on Sunday and making public remarks on Monday morning before U.S. markets opened that sought to reassure Americans that banks and deposits were safe.

His administration stepped in over the weekend to shore up the banks, with the Federal Deposit Insurance Corporation (FDIC) taking over receivership.

McHenry backed the response, saying officials “acted swiftly and boldly.”

“They currently have the tools, and theyve used them appropriately to resolve two banks,” McHenry said. “Bold action I will absolutely support if it is in the interest of the financial system and in the interest of the American people.”

Biden also vowed new bank rules after regulations enacted after the 2008 financial crisis were rolled back under former Republican President Donald Trump.

Any legislation would have to pass both the Senate, controlled by Bidens fellow Democrats, and the Republican-led House before Biden could sign it into law.

The panels ranking Democrat, Maxine Waters, on Monday urged bipartisan work to ensure the stability of the financial system.

(Writing by Susan Heavey; Editing by Chizu Nomiyama)