FDIC Falls Short on Winding Down Regional Banks, Watchdog Finds

The Federal Deposit Insurance Corp. isn’t prepared to wind down a large regional bank more than a year after the failures of Silicon Valley Bank and Signature Bank, a watchdog report found.

The FDIC is charged with resolving failed banks of all sizes, and questions remain about the agency’s ability to safely take apart the largest and most complex global banks. But the agency also lacks the processes, staff, and technical capabilities to handle the failure of large regional banks, the FDIC’s inspector general said in a report released Wednesday.

“Unless the FDIC obtains, maintains, and coordinates the resources needed ...