The fall of Silicon Valley Bank (SVB) and Signature Bank in March led to fears of broader implications for the banking industry. Those fears were realized in May when government regulators took drastic measures to curtail a two-month crisis by seizing and selling off First Republic Bank.

When SVB failed, regulatory bodies were well aware of the bank’s 31 open supervisory findings referring to instances where regulators had flagged problems and urgent issues for remediation—including having enough cash on hand in the event of trouble. However, the bank didn’t address its vulnerabilities, and was ultimately rated deficient for governance and controls.