Congress will be back in full session for the first time on Wednesday as lawmakers deal with the fallout of the recent bank failures and work to prevent a full-blown financial crisis.
The sudden and rapid collapse of Silicon Valley Bank and Signature Bank has the financial sector still reeling from its effects amid economic uncertainty and increased risks for other banks.
Internationally, Chinese President Xi Jinping will meet with Russian President Vladimir Putin in an apparent show of support as the war in Ukraine continues. Xi’s visit could be an escalation of tensions between the East and West, as U.S. officials warn that China could supply Russia with military aid in its invasion of Ukraine.
Here’s what to know ahead of a busy week in politics.
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On top of lawmakers’ minds this week will be preventing another catastrophic failure similar to what happened with SVB, especially when a new study revealed that 186 banks are at risk of a failure akin to SVB if just half of their depositors decide to withdraw their funds.
There’s bipartisan consensus among lawmakers that Congress should act in some capacity to prevent a full-blown financial crisis – it’s just unclear how.
North Carolina Republican Rep. Patrick McHenry, chair of the House Financial Services committee, told CBS’ “Face the Nation” on Sunday that “all options are on the table” when it comes to responding to the crisis.
‘It’s a wake-up call’: Advocacy groups, lawmakers highlight law they say led to SVB collapse
“All options should be on the table, and that’s how I’m approaching it,” McHenry said, adding that his focus right now is understanding what led up to the bank failures.
The Federal Reserve announced last Monday it will be conducting an internal review of its supervision and regulation of Silicon Valley Bank, but Democratic Sen. Elizabeth Warren called for an independent third-party investigation on ABC’s “This Week” on Sunday.
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“I’m calling for an independent investigation of the Fed and the whole regulatory system here. The Fed doesn’t just get to do its own investigation,” Warren said.
Related: Silicon Valley Bank collapse explained in graphics
Chinese President Xi Jinping will meet with Russian President Vladimir Putin from Monday to Wednesday in what appears to be a show of support for Russia’s ongoing invasion of Ukraine, a move that could have severe geopolitical implications amid rising tensions between the West and the East.
China has refused to condemn Moscow as Ukraine continues to fend off Russian aggression, seeking to frame itself as a neutral third party when so many leaders in the West are pledging their support to Ukraine.
Xi’s visit comes after U.S. officials have been continually warning about the possibility of China arming Russia with military aid. White House spokesperson John Kirby called on Xi to also meet with Ukrainian President Volodomyr Zelenskyy and warned China against pursuing a one-sided peace deal.
Related: Nuclear warfare? China arming Russia? Fears of new Cold War rise.
Former President Donald Trump’s Manhattan hush-money probe could be entering a new phase as Trump announced Saturday morning that he will be arrested on Tuesday for an alleged $130,000 payment to silence adult film actress Stormy Daniels about a prior affair in the days before the 2016 election.
Joe Tacopina, an attorney for Trump, told USA TODAY in an email that Trump’s prediction is not based on any contact with the Manhattan district attorney’s office.
A criminal indictment of a former president would be unprecedented, even more so with Trump running for the White House in 2024.
The Manhattan probe is just one of the legal investigations involving Trump which include inquiries into his efforts to overturn the 2020 election and his handling of classified documents.
What we know: Is Donald Trump likely to be arrested soon? Will he be indicted?
As a crackdown on the popular social media app TikTok gains momentum on Capitol Hill, the app’s CEO Shou Zi Chew will testify before Congress for the first time on Thursday.
Lawmakers have been growing increasingly concerned with the app’s parent company, ByteDance, given its connections to the Chinese government. FBI Director Christopher Wray testified to the Senate Intelligence Committee the app “screams out with national security concerns.”
Chew will testify before the House Energy and Commerce Committee and is expected to be aggressively questioned on the app’s data security practices and how it handles private user data.
Related: Don’t ban TikTok from Americans’ phones, says NH governor and possible 2024 GOP candidate
This article originally appeared on USA TODAY: Congress returns to SVB fallout, as Putin and Xi Jinping meet