US senators slam regulators for SVB oversight failures

US lawmakers accused regulators of failing to prevent the collapse of Silicon Valley Bank, which sparked a broader sell-off of banking stocks. The Senate Banking Committee grilled senior Federal Reserve, Treasury and Federal Deposit Insurance Corporation officials about their inability to prevent the Californian lender’s collapse on 10 March, with regulators promising to investigate any failings they may have made in their oversight of SVB.

US regulator sells failed Signature Bank assets to another lender

Flagstar Bank will take over deposits and some loan portfolios of failed Signature Bank, according to the Federal Deposit Insurance Corporation. The bank’s 40 branches will open under Flagstar on Monday, but $60 billion in loans and $4 billion in deposits related to Signature Bank’s digital banking business will remain under the regulator’s control. Meanwhile, the FDIC is seeking to sell the failed Silicon Valley Bank in at least two parts after a massive wave of withdrawals from the bank sparked fears of contagion across the industry.