“Given the out-sized role of liquidity problems in the 2008 financial crisis, we would like to better understand the risks to the U.S. banking system that triggered your concerns and prompted this rare public statement,” Warren wrote in her letter.
Demanding Explanation
Warren, a member of the Senate Banking Committee, requested that Mnuchin explain what prompted him to call the banking executives and regulators in the first place, along with transcripts, summaries and documentations related to both calls. She also asked if Treasury has information about financial risks that could hurt the American economy.
She gave Mnuchin a Jan. 28 deadline to respond to her request.
Warren also sent letters to each of the six banking executives that Mnuchin called before Christmas, asking how events during the week of Dec. 17 affected liquidity, whether they see liquidity risks, and details about the call and actions taken after.
She sent the letters to Jamie Dimon of JPMorgan Chase & Co., Mike Corbat from Citigroup Inc., Goldman Sachs & Co.’s David Solomon, James Gorman of Morgan Stanley, Tim Sloan of Wells Fargo & Co. and Brian Moynihan of Bank of America Corp.
This article provided by Bloomberg News.