The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General has issued its report, The FDIC’s Procurement of Resolution and Receivership Services. Emergency preparedness to procure the services needed to resolve unexpected financial institution failures and systemic financial risks is key to the FDIC’s mission of maintaining stability and public confidence in the U.S. financial system. In Spring 2023, the FDIC was appointed receiver for Silicon Valley Bank, Signature Bank, and First Republic Bank, three of the largest bank failures in FDIC history. In response, the FDIC engaged two contractors for advisory services to support the resolution of these failed banks and mitigate a potential systemic financial crisis.
Our objective was to determine whether the FDIC awarded certain resolution and receivership contracts in accordance with best practices for government contracting and FDIC requirements.
While the FDIC established emergency acquisition procedures with a focus on allowing “maximum flexibility,” we identified seven best practices that would continue to permit flexibility while also enhancing controls and emergency acquisition preparedness. We also found that FDIC personnel did not adhere to some emergency acquisition procedures while awarding two resolution and receivership contract actions.
This report contains 10 recommendations intended to improve the FDIC’s emergency contracting procedures and control environment. The FDIC concurred with all of these recommendations and plans to complete the corrective actions by June 30, 2026.