Signature Bank failure due to 'poor management,' US FDIC report says

[Eugene]

Source: Reuters

Signature Bank failure due to 'poor management,' US FDIC report says

Reuters
Fri, April 28, 2023 at 1:02 PM EDT·3 min read

(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.

Bank 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.

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.

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.

-snip-

Read more: https://news.yahoo.com/signature-bank-failure-due-poor-170216593.html

[bucolic_frolic]

1. Some here at DU might consider temporary bank inspector positions

Sure to be a run on pin stripe suits

[peppertree]

2. But instead, we get revolving door banksters

Which is why these things are sure to happen from time to time.