Bank managers and firms hired to audit their financial statements should follow similar guidance for determining when a bank faces a potential failure, a top US banking regulator said Tuesday.
In the wake of the collapse of Silicon Valley Bank and other regional lenders earlier this year, Federal Deposit Insurance Corp. Chairman Martin Gruenberg said he supports work by the Public Company Accounting Oversight Board and international standard-setters to update rules outlining how auditors vet whether their clients could fail, and when to flag those going concern risks to investors.
Silicon Valley Bank, Signature Bank, and First Republic Bank ...