KPMG Under Pressure After Clean Audits of SVB, Signature Bank

Silicon Valley Bank and Signature Bank collapsed days apart within two weeks of their auditor KPMG LLP signing off on their books.

The Big Four audit firm’s responsibility included assessing the odds of whether the banks could survive the next 12 months. Regulators shuttered Silicon Valley and placed it into Federal Deposit Insurance Co. receivership two weeks after KPMG signed off on the bank’s financials. Signature Bank made it 11 days.

Auditors aren’t fortune tellers, but they are responsible for making sure corporate financials give a fair and up-to-date portrayal of the company’s financial health. With two clients collapsing within ...