Senate Banking Committee Chair Brown urges regulators to take a ‘closer look’ at Archegos meltdown

Senate Banking Committee Chair Brown urges regulators to take a ‘closer look’ at Archegos meltdown

Sen. Sherrod Brown, the Democratic chairman of the powerful Senate Banking Committee, is setting his sights on Archegos Capital Management after the fund's recent losses sent shockwaves through markets.

"Once again, investment banks put profits first and enabled risky derivatives trading that resulted in billions of dollars in losses," Brown said in a statement to CNBC on Wednesday. "We must make sure our financial watchdogs work together to protect the financial system and our economy. I expect the SEC and other regulators to take a closer look."

The committee has jurisdiction over the world's largest banks and regularly engages with the heads of the Securities and Exchange Commission.

Brown is the latest lawmaker to speak out on the incident. Sen. Elizabeth Warren, D-Mass., who is also a member of the banking committee, told CNBC on Tuesday that the "Archegos' meltdown had all the makings of a dangerous situation."