'Fed Chair Powell's actions directly contributed to these bank failures,' said SenWarren.
"For the Fed's inquiry to have credibility, Powell must recuse himself from this internal review," Warren added."It's appropriate for Vice Chair for Supervision Barr to have the independence necessary to do his job.
"The Fed must immediately ask the Department of Justice IG Michael Horowitz who is the chair of the Council of the Inspector Generals on Integrity and Efficiency to appoint either himself or another independent IG to conduct a thorough investigation," Better Markets president Dennis Kelleher said in aMonday, arguing that Fed IG Mark Bialek can't do a credible job because he serves at the pleasure of Powell.
Kelleher likened the Fed's oversight performance to"a bank guard asleep on the job with headphones on during a robbery," pointing to"Whether the bailouts to prevent contagion and more damage from the collapse of Silicon Valley Bank are successful or not, the Biden administration must hold those who caused SVB's failure or otherwise contributed to or enabled it or whose job was to prevent it accountable," said Kelleher.
"Second," he added,"the Federal Reserve must be investigated and held accountable for its failure to properly regulate and supervise the bank. While the impact of the Fed's interest rate policies was a key driver of the failure (discussed in detail
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