FDIC pins Signature Bank’s failure on poor governance and illiquidity
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The United States Federal Deposit Insurance Corp’s (FDIC) post-mortem assessment of Signature Bank of New York (SBNY) revealed poor management and inadequate risk management practices as the root cause for its collapse.
Two government bodies were reportedly investigating Signature Bank for money laundering prior to its collapse. A report from March 15 highlighted that Justice Department was investigating the bank for potential money laundering.
In addition, a parallel probe by the Securities and Exchange Commission was reportedly underway. However, it remains unclear how the investigations aided the bank’s closure.
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