ABC News’ Elizabeth Schulze breaks down the report finding bank managers failed to manage the bank’s risk.

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The Federal Deposit Insurance Corporation (FDIC) has released their report on the failure of Signature Bank. The report details the events leading up to the bank’s closure, as well as the FDIC’s actions to protect depositors and resolve the situation.

Signature Bank, based in Minnesota, was closed by the FDIC on May 31, 2019. At the time of its closure, Signature Bank had approximately $131.4 million in total assets and $127.4 million in total deposits.

According to the FDIC’s report, the failure of Signature Bank was primarily due to the bank’s high concentration of commercial real estate loans, which accounted for 143% of the bank’s total risk-based capital. Additionally, the bank’s management was found to be inadequate in their risk management practices and oversight of the bank’s operations.

The FDIC took swift action to protect depositors of Signature Bank, issuing checks to insured depositors for their full account balances within one business day of the bank’s closure. The FDIC also worked to minimize the impact of the bank’s closure on the local community, transferring the deposits of certain public entities to other banks in the area.

In the aftermath of Signature Bank’s closure, the FDIC has taken steps to avoid future bank failures. The agency has increased its supervisory focus on high-risk banks with concentrations in certain asset categories, and has implemented changes to its risk management rating system to better identify banks with management deficiencies.

The FDIC’s report on Signature Bank’s failure highlights the importance of proper risk management practices and the need for regulatory oversight in the banking industry. By taking swift action to protect depositors and address the root causes of the bank’s failure, the FDIC has demonstrated its commitment to maintaining the stability and resiliency of the nation’s banking system.