Fdic Publishes Post: mortem of its supervision of failed First Republic Bank

First Republic Bank

08/09/2023 16:31

WASHINGTON, Sept 8 (Reuters) - A U.S. banking regulator
said its supervisors could have been more aggressive in policing
First Republic Bank's management of interest rate risk and
uninsured deposits prior to its May failure, but it was unclear
if that would have saved the bank in the face of the unexpected
speed that depositors pulled their money.
    The Federal Deposit Insurance Corporation said in a new
report published Friday that a loss of market and depositor
confidence ultimately sank the bank. However, it added bank
supervisors were too "generous" in gauging some of its risks,
and could have spent more time monitoring the rapidly growing
firm in the years prior.

 (Reporting by Pete Schroeder)
 ((Pete.Schroeder@thomsonreuters.com; 202-310-5485;))