On March 28th, the House of Lords Banking Association held a hearing system on regulatory responses to recent bank failures. Ministers from the Federal Deposit Automobile Insurance Company (FDIC), the Federal Reserve meeting and the National Treasury testified. Martin Gruenberg, the current chairman of FDIC, referred to the failures of SVB and Signature Bank, including the value of digital assets and the institution's response to its woes.

Gruenberg said high levels of uninsured deposits and continued growth were common factors for bank failures in March. The Gruenberg story originated from the shutdown of Silvergate Bank, which focuses on digital assets, announced on March 8th, although it originated from the bankruptcy of FTX.

FTX accounts for less than 10 per cent of the bank's total deposits, but after the collapse of FTX, the bank lost 68 per cent of its deposits, causing a deadly chain reaction for the bank. Gruenberg said:

"the troubles experienced by Yinmen Bank show how the risks of the traditional banking industry exist, […] If you do not get a good management method, it may lead to embarrassing conclusions.

The Federal Deposit Insurance Corporation was notified of SVB crowding out on the night of Thursday, March 9th. SVB closed on March 10th, and the Federal Deposit Insurance Corporation worked with the bank all Sunday, and then reopened the river-crossing bank well the following Monday. Gruenberg stressed that, like Silvergate Bank, SVB focuses its theme activities on a single unit-the venture capital firm.

Signature Bank is more diverse than Silvergate Bank or SVB. This is partly because, after the collapse of FTX, the bank decided to minimize the openness of its digital assets and media checks on the bank's links to the password exchange. The bank received more negative attention related to FTX in February, when it was tested to help with mixed use of FTX accounts.

Signature Bank's deposits have been draining since March 9, and the next day, Friday, became more and more serious, with about 20% of deposits being withdrawn within hours. Senior executives can not provide accurate financial statements, the situation has changed badly. Gruenberg said:

"negative balance processing must be signed by banks, regulators and the New York City Federal Government Home purchase Bank to work together for a long time to pledge loan collateral and to obtain the necessary funds from the Fed's discount window to make up for negative capital outflows."

"this was done a few minutes before the Fed meeting Telegraph room was closed," he added.

Gruenberg stressed that Silvergate Bank and Signature Bank have adopted a digital platform that allows them to buy and sell throughout the day. They are all "the only two such service platforms left among American insurance companies."

Gruenberg suggested that the social security fund for deposits to deal with SVB and Signature Bank losses is basically likely to be $22.5 billion. He added that recently, he had echoed the words of several government officials:

"although something has happened recently, the situation in the US financial system remains stable."

FDIC will publish a comprehensive report on the deposit social insurance system; FDIC's chief risk officer will publish a report on the company's regulation of Signature Bank by May 1. In addition, the FDIC will release new policy-making proposals for particular assessment this month.

Many of the speakers at the hearing brought shorter testimony. Nelliang, minister of the Ministry of Finance in charge of China's Finance Bureau, described how the Ministry of Finance came into contact with the FDIC and the Federal Reserve during bank failures. Michael S. Eric, deputy secretary of the Federal Reserve Conference Management and Control, discussed the SVB failure and the government's next steps in very technical terms.

Magazines and periodicals: after the collapse of FTX, can you rely on logging in to the password trading center?