Hold watch over banks, however attempt to not alarm anybody.
That’s how financial institution regulators appeared to view their duties within the lead-up to final month’s banking disaster, on the heart of which have been the failures of Silicon Valley Financial institution in California and Signature Financial institution in New York.
For years, federal regulators overseeing Silicon Valley Financial institution identified its many flaws utilizing language whose impression appeared closely blunted by technical jargon. They recognized a slew of issues, however their findings lacked urgency. They gave the financial institution’s leaders lengthy timelines to make things better, delivered total security and soundness rankings at a plodding tempo and appeared unwilling to attract huge conclusions concerning the many accumulating issues.
The same story unfolded in New York, the place supervisors accountable for monitoring Signature Financial institution’s actions slow-walked regulatory reviews and didn’t spur the financial institution’s senior leaders to repair issues that they had recognized.
Listed here are some takeaways from opinions launched on Friday by the Federal Reserve, the Federal Deposit Insurance coverage Corp. and the U.S. Authorities Accountability Workplace.