A top US banking regulator has launched investigations into managers’ conduct in the Silicon Valley Bank and Signature Bank failures, Reuters reported. “It is worth noting that these two institutions were allowed to fail,” Martin Gruenberg, chairman of the Federal Deposit Insurance Corp., said in prepared remarks for a Senate hearing on Tuesday. “Shareholders lost their investment. Unsecured creditors took losses. The boards and the most senior executives were removed.” The FDIC stepped in and took control of the two lenders earlier this month as depositors yanked money from the two lenders. Gruenberg said the FDIC can probe and hold accountable the directors, officers, professional service providers and “other institution-affiliated parties” for losses tied to the banks, as well as any misconduct in the management of the banks. “The FDIC has already commenced these investigations,” he said.
