Keep an eye on your bank, but don’t warn anyone.
Banking regulators seem to have viewed their mandates this way, leading up to last month’s banking crisis, which centered around the failures of California’s Silicon Valley Bank and New York’s Signature Bank.
Over the years, federal regulators overseeing Silicon Valley banks have pointed to its many flaws, using language whose impact seems to have been greatly dulled by technical jargon. . They identified many issues, but their findings lacked urgency. They give bank leaders long timelines to fix problems, provide overall safety and soundness assessments at a slow pace, and draw big conclusions about the many accumulated problems. did not seem to like
A similar story unfolded in New York. There, supervisors charged with overseeing Signature Bank’s activities delayed regulatory reporting and failed to persuade the bank’s senior executives to remediate the problems they identified.
Here are some highlights from the review released Friday by the Federal Reserve Board, the Federal Deposit Insurance Corporation and the U.S. Government Accountability Office.
