The Federal Deposit Insurance Corp. Inspector General’s review of the FDIC’s actions around the collapse of Signature Bank concluded in a report on Tuesday that the FDIC missed opportunities to downgrade Signature Bank’s management component rating and to further escalate concerns by bank supervisors prior to a fatal run on deposits at the bank on March 10. The FDIC did not always perform supervisory actions in a timely manner, the IG report said. The report cited staffing challenges that caused a delay in issuing supervisory findings. While the FDIC appropriately downgraded Signature Bank’s liquidity rating, the overall episode warrants review and potential revision to examine guidance on liquidity, the IG report said. In a response to the IG’s report, the FDIC said it agrees with the IG’s findings and that they’re consistent with a report the FDIC issued in April. The FDIC said it has taken measures to address its policies and is working on carrying out the six recommendations in the IG’s report. The FDIC closed Signature Bank on March 12 and sold the bulk of its remaining assets to New York Community Bancorp
NYCB,
+2.08%
on March 20. It was the third-largest bank failure in U.S. history at the time.
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