FDIC's Review Finds It Missed Opportunities to Take Earlier Action Before First Republic Bank Failure
November 29 2023 - 11:56AM
Dow Jones News
By Ben Glickman
The Federal Deposit Insurance Corporation missed chances to take
earlier action before the failure of First Republic Bank, according
to a report.
The material loss review of First Republic Bank, published
Tuesday by the FDIC inspector general's office, concluded the
agency should re-evaluate its guidance on uninsured deposits
following the First Republic Bank failure.
The report found the "magnitude and velocity of uninsured
deposit outflows" made a re-evaluation necessary.
The FDIC said First Republic was well-capitalized upon each
examination based on established metrics, but the agency may
consider changes to guidelines for safety and soundness, including
potentially adopting noncapital triggers for regulatory action.
First Republic faced a run on deposits in the spring following
the collapse of Silicon Valley Bank in March, eventually prompting
regulatory intervention.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
November 29, 2023 11:41 ET (16:41 GMT)
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