GOP Rep. Kustoff: We Need to Know Why Regulators ‘Failed to Catch’ SVB Collapse

On Saturday’s broadcast of the Fox News Channel’s “Fox News Live,” Rep. David Kustoff (R-TN) stated that while Silicon Valley Bank (SVB) was poorly managed and had unique issues, we must consider that the collapse could be a partial reflection of “the general state of the economy,” and said that “We need to also know where the regulators were, what they were concentrating on, and why they failed to catch this before the events of the last several days.”

Kustoff said that there was “poor management by the bank and bank executives. But I think what separates this failure from what we saw…in 2008, there are some really — some unique and distinct issues as relates to the bank, certainly the tech-heavy companies and deposits in Silicon Valley. So, that separates that from the 2008 failures. The fact of the matter is though, we’ve got to consider that the economy — this may be, in part, reflective [of] the general state of the economy, which, I think, most people in my district do not think is as rosy as the Biden administration portrays. We need to also know where the regulators were, what they were concentrating on, and why they failed to catch this before the events of the last several days.”

Follow Ian Hanchett on Twitter @IanHanchett