FDIC Says Signature Oversight Hampered by Lack of NY Staff (1)

The Federal Deposit Insurance Corp. acknowledged it was too slow to respond to problems at Signature Bank before the lender’s rapid collapse last month, partly due to a staffing shortage in its New York office.

The FDIC said that “resource challenges” in that office kept it from adequately staffing an examination team dedicated to the lender. The regulator also could have downgraded a key risk metric on Signature’s management, according to a report from the watchdog on Friday.

New York state financial officials closed Signature after depositors fled. Then the FDIC took over the institution on March 12, making it ...