FDIC Director Says Agency’s Failed-Bank Auctions Could Do Better
- McKernan says the sale process should embrace non-banks
- Bank customers pay the price for leaving ‘value on the table’
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After the FDIC brokered the sale of collapsed Silicon Valley Bank to First Citizens BancShares Inc. — driving up the buyer’s stock price and saddling the regulator with a $20 billion bill — it got a notable critic: one of its own board members.
Jonathan McKernan, a Republican who joined the agency in January, expressed concern regarding the Federal Deposit Insurance Corp.’s auction process. The regulator should do more to get the best price when it auctions failed lenders, he said.