AFP Foundation Launches Investigation into Biden Administration’s Handling of Silicon Valley Bank Failure

Mar 29, 2023 by AFP

ARLINGTON, VA – Today, Americans for Prosperity Foundation (AFPF) sent Freedom of Information Act (FOIA) requests to the Federal Deposit Insurance Corporation (FDIC), Department of the Treasury, the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau seeking records regarding the failure of Silicon Valley Bank, including:

Why the Federal Reserve failed to take decisive action when it knew about SVB’s problems for more than a year;
Why the FDIC prevented larger banks from bidding on SVB before the takeover on March 12;
Whether FDIC considered the harm to community banks, which are now facing increased fees because of the actions of their larger competitors;
The basis for the system risk determination to the Federal Deposit Insurance Act’s least cost resolution mandate;
Communications with the White House about these issues.

AFP Vice President Akash Chougule said:

“In addition to the bank’s own mismanagement, the collapse of Silicon Valley Bank is a failure of government policy starting with the Federal Reserve’s easy money policies and excessive government spending on the front end, and lax enforcement and improper priorities preventing a sale on the back end. The American people deserve answers on the Federal Reserve’s supervisory failure, when it knew there were serious problems for over a year.”

AFPF Director of Investigations Kevin Schmidt said:

“Federal Reserve Chair Jerome Powell said on Wednesday that he welcomes an outside or independent investigation. We agree that such an investigation is needed, and that’s why AFPF requested expedited processing for these FOIA requests. Unprecedented and arbitrary government action demands transparency and accountability.”

Read the FOIA requests here: