Bank Failures: FDIC Probing Management Conduct in SVB, Signature

Posted by Valentine Belue on Thursday, August 29, 2024

The Federal Deposit Insurance Corp. has launched investigations into managers’ conduct in the Silicon Valley Bank and Signature Bank failures.

“It is worth noting that these two institutions were allowed to fail,” Martin Gruenberg, the agency’s chairman, said in prepared remarks for a Senate Banking Committee hearing set for Tuesday. “Shareholders lost their investment. Unsecured creditors took losses. The boards and the most senior executives were removed.”

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