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Key lawmakers say upcoming hearings on bank failures aim to boost U.S. confidence in banking sector.
Regulatory failings that missed warning signs the banks were in trouble will be the subject of back-to-back hearings next week, according to the two House and Senate committees that oversee banking. Martin Gruenberg, the chairman of the Federal Deposit Insurance Corporation, Michael Barr, the vice chair for supervision of the Federal Reserve, and Nellie Liang, the undersecretary of the Treasury for domestic finance, are all set to speak at both hearings.
The hearings will take place as lawmakers attempt to determine what led the two institutions to fail and as numerous Democrats introduce legislation to strengthen banking sector regulations. Legislators are also working to prevent the economy from suffering more harm and to boost public confidence in the banking system.
At the time of insolvency 94% of the bank's deposits were above the $250,000 insurance cap. Do you think that the government should be responsible for any amounts above the cap? Or should the owners of the account do due diligence when it comes to monitoring their amounts?