On Wednesday, anger at individual regulators and a lack of sufficient banking regulation flowed from the Senate into the House. Federal Deposit Insurance Corporation (FDIC), Treasury Department, and Federal Reserve officials took heat from Financial Services Committee after recent bank failures.

House Democrats responded Wednesday by stating that banks must have higher liquidity requirements and their very own type of insurance policies, known as a contingent convertible bond, to avoid borrowing money from the DIF.

"We have a lot of lessons to learn from the side-by-side failures of Silicon Valley Bank, with assets less than 1% of GDP, as well as Credit Suisse, which has assets greater than 100% of Swiss GDP. The difference, I believe is contingent capital," Rep. Bill Foster (D. Ill.).

He said, "Had Congress directed us to include contingent capital in the stacks of U.S. large bank banks, we would be able to solve the SVB without hitting deposit insurance fund."

"The FDIC is the primary regulator of banks. The state can do anything they want to a bank not operating in a safe or sound manner. Mr. Barr, is that not right?"

The bank was given a 3(three) by regulators. This is a rating system that indicates that the bank is not well managed. It is a grade that ranges from a 1 (which is considered optimal) to a 5 (which is considered unacceptable).

He said that the markets are responding: "I believe it's pretty under control now. It remains to be seen. However, we are looking to see if it requires any additional legislation."