Barr mentioned the financial institution was a “textbook case of mismanagement.” And its authorities minders had been effectively conscious it had critical issues. In 2021, the supervisors discovered points with its liquidity administration, and in 2022, they decided an array of issues with board oversight, danger administration and inner auditing, Barr mentioned. That summer season, they dropped the financial institution’s administration and governance rankings to alarm-bell ranges, subjecting it to progress restrictions.
