Ann Wagner: “Republicans agree that the failure of Silicon Valley Bank and other institutions last March should be studied to better…”

“Republicans agree that the failure of Silicon Valley Bank and other institutions last March should be studied to better understand their impact on lending and community banks. That is why the Financial Services Committee devoted much of last spring and summer to holding a series of bipartisan hearings to better understand the bank failures and their consequences. We also advanced a package of legislation in response to the bank failures. However, studies about lending and community banks should be done by banking regulators. Such a study is far outside the expertise of the SEC and especially the Advocate for Small Business Capital Formation. H.R. 2799 does not include a study on banking services for venture funds. However, the focus of our study is to better understand venture capital and the potential obstacles preventing their growth or hindering their ability to serve the entrepreneurs they invest in, especially for smaller venture funds outside of major financial hubs. The study required by this amendment is materially different. The SEC is very experienced in regulating and studying venture funds, but bank lending and community banks are far outside the SEC's remit. While I appreciate my colleague's interest in better understanding the implications of the bank failures on lending, this is not the proper package for this amendment. For those reasons, I urge my colleagues to reject this amendment and support the underlying legislation.…”