US regulators admit lapses as banking crisis reverberates

[superadmin]

WASHINGTON: US regulators today put large banks on notice that tougher oversight is coming, after the Federal Reserve and Federal Deposit Insurance Corporation detailed their supervisory lapses before deposit runs caused the collapse of Silicon Valley Bank and Signature Bank in March.

Though the banking sector broadly has since stabilised, the far-reaching impact of the failures of those two large regional banks was felt yesterday as an even larger lender, First Republic Bank, teetered on the brink of collapse.

Regulators were preparing to shut San Francisco-based First Republic, a person familiar with the matter told Reuters.

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