Rep. Patrick McHenry’s Rollback of Donations from Bank Executives Prompts Investigation into Two of the Largest Bank Failures in History

The House Financial Services Committee is investigating two of the largest bank failures in history, and the chairman of the committee, Rep. Patrick McHenry (R-N.C.), has returned all donations from a fundraiser with bank executives in Signature Bank’s boardroom just days before its collapse. This rollback was leveraged with a lobbying campaign that cost tens of millions of dollars, drew an army of hundreds of lobbyists and was seeded with ample campaign contributions.

McHenry has pushed back on suggestions that he should recuse himself from the high-profile congressional probe, stating that he could not be influenced by campaign cash. He also noted that when people contribute to him, it is an endorsement of his agenda — not the other way around.

The episode offers a fresh reminder of the power that bankers wield in Washington, where the industry spends prodigiously to fight regulation and often hires former lawmakers to help shape policy. In 2018, an unlikely coalition voted to roll back portions of a far-reaching 2010 law intended to prevent a future financial crisis.

The recent collapse of Silicon Valley Bank and Signature Bank has prompted a federal rescue and has stoked anxiety about a broader banking contagion. The investigation into the bank failures is ongoing, and the results of the probe will be closely watched by the public. It remains to be seen whether the rollback of the 2010 law and the lobbying campaign will be found to have contributed to the bank failures.