O KPMG consultancy give him approval for recently bankrupt bank accounts Bank of Silicon Valley (SVB) It is Signature Bank on paths audits held respectively 14 and 11 days ago, as reported by The Wall Street Journal on Monday. The audits concerned the 2022 financial year, so KPMG was not reviewing the accounts for the current period in which the problems developed, but among its functions is to point out risks and other relevant issues at the accounting close, says the newspaper.

The SVB peaked in deposits in the first quarter of 2022 and these dropped by 13% in the last nine months of the year. In the current year, it reported on March 8 that customers were “burning cash” at a high level that “increased further in February,” he adds.

KPMG’s possible mistakes will predictably form part of the investigation announced this Monday by the Federal Reserve into its own supervision of the SVB, scheduled for publication on May 1, and of the lawsuits that have begun to be filed by clients. The consultancy told the newspaper that it cannot comment on specific audits for confidentiality reasons, but in its defense it said it is not responsible for events subsequent to the reviews of its accounts.

withdrawal of deposits

The SVB announced last Wednesday that it was seeking a capital increase to face the financial difficulties, which led many depositors to withdraw their funds, creating one of the biggest bank panics of the decade: on Thursday they tried to raise 42,000 million dollars , according to what he told the regulators. As a consequence, authorities closed and intervened at the bank on Friday due to lack of liquidity.

Signature Bank, which has fewer assets than SVB, was also the victim of a “run on the banks” last week and was shut down and seized by regulators on Sunday.

The US government, the banking regulator (FDIC, its acronym in English) and the central bank on Sunday presented an emergency plan to protect the deposits of both entities and said that customers can withdraw their money on Monday.

Still, fears of a financial crisis weigh on the banking sector in the US and other markets, with sharp declines in regional banks such as First Republic Bank, which today lost almost 62% of its value, and whose accounts were also audited by KPMG , says the newspaper.