Treasury, FDIC to brief California lawmakers on SVB collapse

U.S. Treasury and Federal Deposit Insurance Corp. (FDIC) officials plan to brief members of California's congressional delegation on the collapse of Silicon Valley Bank, Axios has learned.

Why it matters: SVB, based in Santa Clara, Calif., is the nation's 16th-largest bank, making this the largest bank failure since 2008.

• Lawmakers want details on the FDIC takeover of the bank, and the agency's plans to prevent SVB's failure from rippling to other banks.
• The FDIC is a government agency that insures deposits in U.S. banks up to $250,000 per depositor.

The details: California congressional offices were informed late Saturday that Treasury officials would brief lawmakers by Zoom at 1 p.m. ET Sunday, according to two sources familiar with the matter and a copy of the invite viewed by Axios.

• Before that, California lawmakers were to be briefed by the FDIC late Saturday, according to one of the sources. That briefing initially was planned for Saturday afternoon but was postponed.

The latest: After taking control of SVB on Friday, the FDIC said in a statement that its branches would reopen Monday, and insured depositors would have "full access to their insured deposits no later than Monday morning."

• Those with deposits greater than $250,000, the FDIC's insurance limit, will receive "an advance dividend within the next week," the agency said.

What they're saying: The bank's failure on Friday prompted lawmakers to call for the FDIC to address concerns about the impact on SVB customers' personal finances and the financial system as a whole.

• "I have heard from scores of constituents who have not received their paychecks because of this crisis, putting their mortgages at risk," Rep. Eric Swalwell (D-Calif.) said in a statement.

• "If regulators do not act quickly," Sen. Alex Padilla (D-Calif.) tweeted, "the Silicon Valley Bank collapse will have widespread ramifications for small businesses, start-ups, and nonprofits trying to make payroll — as well as on our broader economy."
• Freshman Rep. Kevin Mullin (D-Calif.) tweeted, "My colleagues and I are asking the FDIC and other relevant federal agencies for a briefing and full clarity to SVB depositors."

The backdrop: Rep. Maxine Waters (D-Calif.), the ranking member of the House Financial Services Committee, organized bipartisan briefings for committee members on Friday with officials from the Federal Reserve, FDIC and Treasury Department, a source familiar with the matter told Axios.