In a blog post published earlier this week, Michael Clements, Director of Financial Markets and Community Investment at the US Government Accountability Office (GAO), argues that regulators failed to act upon clear signs in the lead-up to the 2023 bank failures and explains what they may do to prevent similar failures going forward.
"Years before the actual failures, there were signs that Silicon Valley Bank and Signature Bank weren't doing well," Clements writes. "As early as 2019, federal regulators identified risky practices at the banks." Both banks, regulators were aware, had experienced rapid growth and relied upon less stable funding sources. Regulators also saw that the banks had ineffective risk management systems, Clements recounts.
This content is available to paid Members of Starling Insights.
If you are a Member of Starling Insights, you can sign in below to access this item.
If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform. Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.
Join The Discussion
Sign in and be the first to comment.