According to former First Republic Bank CEO Michael Roffler, regulators did not raise any concerns about the bank’s strategy, liquidity, or management performance.
In his prepared testimony to the Senate Banking Committee, former First Republic Bank CEO Michael Roffler attributed the bank’s collapse to the contagion effect caused by failures of other regional banks. Roffler stated that regulators did not express concerns about the bank’s strategy, liquidity, or management performance. He further noted that over $100 billion in deposits were withdrawn from the bank within weeks due to industry-wide panic regarding the stability of regional banks. Roffler is scheduled to deliver this testimony at a hearing on Wednesday.
The former First Republic Bank CEO Michael Roffler, the bank’s financial position and strategy underwent regular reviews by the California Department of Financial Protection and Innovation (DFPI) and the FDIC (Federal Deposit Insurance Corporation).
On May 1, California banking regulators made the decision to close down First Republic Bank and sell its assets to JPMorgan Chase & Co. This resolution aimed to address the largest bank failure in the United States since the 2008 financial crisis and bring an end to the ongoing banking turbulence.