FDIC Vice Chair Travis Hill expressed concern that "an overreaction is underway" from regulators in response to the bank failures in March 2023.
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In a report based on an internal review of its supervision over First Republic Bank, the FDIC concluded that "meaningful action to mitigate interest rate risk and address funding concentrations would have made First Republic more resilient and less vulnerable to the March 2023 contagion event."
The FDIC concluded that the root cause of Signature Bank’s failure was poor management and illiquidity, exacerbated by contagion effects from Silvergate Bank's and Silicon Valley Bank's closings.
The FDIC extended the bidding process for Silicon Valley Bridge Bank, N.A. in order to "maximize value and achieve an optimal outcome" following "substantial interest from multiple parties."
The FDIC proposed revisions to the guidelines for the appeals process on material supervisory determinations. The revisions would clarify the role of the FDIC's Office of the Ombudsman, an administrative office that focuses on providing informational assistance to organizations under FDIC supervision.