FDIC Says It Should Have Done More to Supervise First Republic Bank
- Agency says it spent less time on exams even as bank grew
- Regulator says it should have focused on interest-rate risk
The Federal Deposit Insurance Corp. headquarters in Washington, DC.
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The Federal Deposit Insurance Corp. acknowledged on Friday that it should have strengthened oversight of First Republic Bank before the lender’s failure in May.
The FDIC said in a report that it didn’t appropriately take into account the bank’s high levels of uninsured deposits or vulnerability to changes in interest rates. The agency also said the amount of time examiners dedicated to the bank declined despite First Republic’s significant expansion.