The Federal Deposit Insurance Corp. (FDIC) is investigating the actions of the leaders of Signature Bank and Silicon Valley Bank for their role in the banks' collapses, according to Chairman Martin Gruenberg. In testimony prepared for a U.S. Senate hearing, Gruenberg detailed their mismanagement and dangerous business concentrations, particularly in digital assets at Signature Bank. The FDIC has put itself on the hook for an expected $22.5 billion hit to its insurance fund, mostly to cover uninsured deposits, due to the fall of the two banks.

Federal Reserve Vice Chairman for Supervision Michael Barr shared similar revelations about trouble inside California-based Silicon Valley Bank in testimony for the same hearing. Despite agency supervisors admonishing the bank and restricting its growth due to poor management, the final collapse of Silicon Valley Bank caught them off guard. Silvergate Bank, a small bank almost entirely reliant on the crypto sector, also experienced a collapse due to the withdrawal of deposits from the digital asset market. However, it managed to execute an unusual self-liquidation that spared the FDIC from taking it into receivership, as it did with the two larger institutions.