WASHINGTON — Almost exactly
Sen. Bill Hagerty, R-Tenn., sent a letter on Sunday asking Federal Deposit Insurance Corp. Chairman Martin Gruenberg about its sale
Hagerty suggested that the bid chosen by the FDIC might not have been the highest offer submitted. The FDIC is required to choose the least costly offer to the deposit insurance fund, which is the pot of money that the FDIC uses to resolve failed banks.
“My concerns about this sale are heightened by the level of political attention it has attracted,” he said.
Hagerty cited a letter from New York City Mayor Eric Adams to the FDIC endorsing the bid submitted by Related Fund Management, which eventually won out among
“Under no circumstances should a bid be selected because it is politically favored or because a bidder — in this case, Community Preservation Corp. — professes commitments to progressive political causes,” he said.
On the same day, Sen. Elizabeth Warren, D-Mass., wrote a letter to all three prudential banking regulators, urging them to tighten capital and liquidity requirements, stress tests and resolution planning for banks with more than $100 billion in assets.
Particularly, Warren said she’s concerned about the large regional bank category, which saw their requirements somewhat loosened with a
After the failure of Silicon Valley Bank,
“I strongly support your agencies’ work to finalize the Basel III rule to strengthen capital requirements for the biggest banks,” Warren said. “In addition to this effort, I also urge you to follow through on the commitments you made in March 2023 to implement President Biden’s request for stronger capital and liquidity requirements, stress tests, and resolution planning for banks with at least $100 billion in assets.”