Lawmakers divided on solutions after SVB collapse and Senate hearing embarrassment.

Lawmakers from both parties agree that the Federal Reserve should have done more to prevent the failure of Silicon Valley Bank, but disagree on how to prevent similar failures in the future. Democrats want to strengthen capital requirements on smaller banks, while Republicans argue that regulators already have the necessary tools. Federal Reserve Vice Chair of Supervision Michael Barr has suggested revising some of the rules governing regional banks that were loosened at the end of last decade, while several Democrats want smaller banks held to the same standards as larger financial institutions.