In the wake of the collapse of two large California-based banks, Sen. Tommy Tuberville said Alabama residents should not worry about the state’s banks.
Last week, the collapse of Silicon Valley Bank and Signature bank fueled concern throughout the nation and the state of Alabama.
In his weekly teleconference Wednesday, Tuberville (R-Auburn) discussed the banks’ failures.
“Executives of (Silicon Valley Bank) didn’t adjust to the rising interest rates. We all knew they were coming and they should have too,” said Tuberville. “The bank didn’t have a chief risk officer for almost a year. They were understaffed.
“Just before they collapsed, executives sold stock and paid out huge bonuses. The federal reserve in the state of California – they failed, they failed to see the clear warning signs and act upon it.”
“They dropped the ball. This wasn’t a regulation problem, this was an enforcement problem.”
Tuberville, however, said Alabamians have no reason to be concerned about the current banking situation.
“We checked with the people in Alabama, the banks in Alabama, they’re very strong,” he said. “They are regulated and they go by their regulators advice and so I don’t think there’s any problem we’re going to have in the state of Alabama with our banks.”
Austen Shipley is a staff writer for Yellowhammer News.
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