VIDEO: Huizenga Grills Former Leaders of Silicon Valley, Signature, and First Republic Banks on Mismanagement and Oversight
Today, Congressman Bill Huizenga, Chairman of the House Financial Services Subcommittee on Oversight and Investigations, grilled the former leaders of Silicon Valley Bank, Signature Bank, and First Republic Bank, all of which failed in the past 2 months.
During his questioning, Chairman Huizenga directly asked the former leaders if they take responsibility for the failure of their banks as well as their engagement with regulators. Huizenga then called out two of the former executives for failing to accept responsibility for their banks failing.
Video of Congressman Huizenga’s exchange as well as a transcript are available below.
I’m going to ask you what I think are two of the most important questions, frankly. I will go down the line asking you this. The first is do you take responsibility for the failure of your bank?
Former CEO of Silicon Valley Bank, Mr. Greg Becker:
Congressman, as CEO, I think you have to take responsibility for the ultimate outcome of every institution.
Co-Founder and Former Chairman of Signature Bank, Mr. Scott Shay:
As chairman of the board, I think I did a responsible role throughout to fulfill my duties.
Sorry, just a second. Do you accept the responsibility for the failure, or do you believe it was other management?
I’m sorry that the bank was seized by the regulators. I thought we had a responsible plan over the next morning.
I bet your depositors are too. So, I take that as a no.
Former CEO and President of First Republic Bank, Michael Roffler:
Mr. Chairman, this was an event that isn't foreseeable when it happens, and the contagion spread very quickly, and panic is very hard to control. What I feel responsible for is for our colleagues, each and every day, and our clients even every day to make sure they are taken care of and supported during this time.
That also sounds like a no. So, congratulations Mr. Becker, you are the only one to man up and actually take responsibility for that.