California bank regulator finds own faults in bank's demise
California's bank regulator was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the bank to fix its problems.
Watch CBS News
California's bank regulator was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the bank to fix its problems.
On Wall Street, a string of banking industry failures is casting a cloud over midsize lenders such as PacWest and Western Alliance
The legislation from a bipartisan group of senators would require regulators to claw back all or part of the compensation bank executives got in the five years leading up to a bank's failure.
Leaders in the startup community remain optimistic about the strength of their industry and the role the Bay Area plays in driving innovation weeks after the collapse of Silicon Valley Bank.
Silicon Valley Bank failed earlier this month after a sudden run on deposits, prompting regulators to seize control and sparking global fears about the sector.
The treasury secretary says the plan would be set in motion if additional collapses trigger a run on banks.
Officials announced the takeover on Sunday, after shares of Credit Suisse plummeted last week despite a $54 billion loan from the Swiss National Bank.
The bankruptcy comes days after its bank was shut down and taken over by regulators amid a solvency crisis.
"Americans can feel confident that their deposits will be there when they need them," the treasury secretary is expected to tell Congress Thursday.
All deposit accounts at Silicon Valley Bank and Signature Bank in New York will be guaranteed, the Federal Reserve, Treasury Dept. and FDIC said in a joint statement.
Across the Atlantic, startup companies woke up Saturday to find that Silicon Valley Bank's U.K. business will stop making payments or accepting deposits.
