The Federal Deposit Insurance Corporation (FDIC) published a 63-page report outlining issues Signature faced, attributing its failure to “poor management,” saying the bank heavily relied on uninsured deposits, did not have strong liquidity risk management practices and maintained poor risk management in general. These factors were exacerbated by a bank run spurred by the collapse of the other banks, the report said. The bank servicing the crypto industry was also cited as a major risk factor.
Source: https://www.coindesk.com/policy/2023/04/28/signature-bank-failed-because-of-mismanagement-contagion-fdic-report-says/?utm_medium=referral&utm_source=rss&utm_campaign=headlines