Similar to SVB, Signature examiners reported weak corporate governance practices and failures by bank management to address shortcomings identified by supervisors, including the firm's reliance on uninsured deposits. The Federal Reserve issued a report detailing its supervision and regulation of SVB earlier on Friday. The same day SVB failed, Signature lost 20% of its total deposits in a matter of hours, FDIC Chair Martin Gruenberg has said. Regulators closed Signature on March 12, two days after Silicon Valley Bank was shuttered following $42 billion in deposit outflows in a single day. Since 2020, an average of 40% of positions in the FDIC's large bank supervisory staff in the New York region were vacant or filled by temporary employees, the report said. Just as critically, the FDIC said its supervisory staff was inadequately resourced for the task of overseeing the bank, an issue it flagged as a significant impediment more widely to its mission of maintaining the safety and soundness of the banking system. April 28 (Reuters) - Last month's failure of New York-based Signature Bank was caused by "poor management" and a pursuit of "rapid, unrestrained growth" with little regard for risk management, the Federal Deposit Insurance Corporation said on Friday in a report detailing its supervision and regulation of the regional bank.īank management and its board chased growth and deposits without "developing and maintaining adequate risk management practices and controls appropriate for the size, complexity and risk profile of the institution," according to the 63-page report.
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