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WASHINGTON — Lawmakers are looking for ways to resolve a major concern that threatens to keep the banking industry in turmoil: The federal government insures bank deposits only up to $250,000.
Some members of Congress are looking for ways to boost that cap, at least temporarily, in order to stop depositors from pulling their money out of smaller institutions that have been at center of recent bank runs.
Congressman Ro Khanna led efforts to ensure depositors of Silicon Valley Bank could withdraw their funds following the largest collapse of a U.S. financial institution since the 2008 mortgage meltdown.
Washington, DC – Today, Representatives Ro Khanna (CA-17), Zoe Lofgren (CA-18), Anna Eshoo (CA-16), and Jimmy Panetta (CA-19) released the following statement applauding the Department of Transportation for recommending $500 million in funding for the BART Silicon Valley Phase II Project.
"There should be a clawback of any of that money," the California Democrat told the Washington Post. "It should be going to the depositors."
Indian-American Congressman Ro Khanna has urged Congress to come together to reverse the deregulation policies put in place under the previous Trump administration to avert future instability like the one seen after the collapse of the Silicon Valley Bank.
Washington, DC – Today, Rep. Ro Khanna (D-CA), the representative from Silicon Valley and Congressional Progressive Caucus Deputy Whip, issued the following statement on Silicon Valley Bank, located in his district:
Rep. Ro Khanna (D-Calif.) said that any stock sold by Silicon Valley Bank executives should be "clawed back" and given to depositors of the bank after it collapsed last week.
Federal filings show that Silicon Valley Bank CEO Gregory Becker sold over $3.5 million in stock in the bank roughly two weeks before the firm was taken over by federal regulators amid a bank run that saw depositors scrambling to get their money out.
The list of companies and banks potentially affected by Friday's collapse of Silicon Valley Bank is growing. But at least one person seems to have cashed in recently: chief executive Greg Becker, whose trust sold $3.6 million worth of shares on Feb. 27, according to SEC filings.
Becker is now coming under scrutiny, including from a personal acquaintance, Democratic California Rep. Ro Khanna, who said Sunday that Becker should give that money back.
California Democrat Rep. Ro Khanna said Sunday that progressives should be the "most concerned" with Silicon Valley Bank's (SVB's) collapse if the Biden administration fails to take action in the next several days.
MARGARET BRENNAN: We're joined now by Congressman Ro Khanna. He is a Democrat who represents the California District where Silicon Valley Bank was once headquartered. Good to have you here. I wonder what you make of the Treasury Secretary's remarks, I know you've been in contact with the White House with Treasury and with FDIC.