released Friday. Bank management “did not always heed FDIC examiner concerns, and was not always responsive or timely in addressing FDIC supervisory recommendations,” the report said. Contagion effects from Silicon Valley Bank’s failure and Silvergate Bank’s self-liquidation, which occurred just days before Signature Bank was forced to close, helped ignite the run on deposits, the FDIC report stated. But the FDIC said that was not the root cause of Signature Bank’s failures.
The FDIC’s report comes on the heels of the Federal Reserve’s report, which found that SVB failed due to a similar lack of internal risk management. The report also said that supervisors at the Fed “did not fully appreciate the extent of the vulnerabilities as Silicon Valley Bank grew in size and complexity.” And when they identified risks at SVB, they did not work with the bank to resolve the issues in a timely manner, the report found.