FDICannounced that it may downgrade Signature Bank.
New developments continue to be experienced regarding Signature Bank, which is one of the banks that have had problems in the past months. The regulatory body made statements on the subject.
Signature Bank Confession from the FDIC
Developments continue in the collapse of Signature Bank, which has shaken the crypto world deeply in the past months.
Federal Deposit Insurance Corp. ( FDIC), explained that the lender was very slow in responding to issues at Signature Bank prior to its collapse last month.
The FDIC said “resource challenges” at its New York office were keeping it from adequately deploying a dedicated review team to Signature Bank. According to a published report, regulators may also downgrade a key risk metric related to the bank’s management.
The FDIC said “resource constraints” at its New York office prevented Signature Bank from providing adequate staffing to an assigned review team. Since then, Signature has come under intense scrutiny for its entry into the cryptocurrency space and lending to commercial real estate. The report is the FDIC’s most comprehensive account ever of what happened in the chaotic process leading up to lender failure.
