Signature Bank: Regulators shut down New York-based Signature Bank Sunday, two days after Silicon Valley Bank collapsed.
In a statement, the New York state’s Department of Financial Services said it has taken possession of New York-based Signature Bank and appointed the US Federal Deposit Insurance Corp as receiver. This is the second bank failure in a matter of two days. Regulators closed Silicon Valley Bank on Saturday following indiscriminate fundraising by the bank.
‘No losses will be borne by the taxpayer’
According to a statement released jointly by the US Treasury Department and other bank regulators on Sunday, all depositors of Signature Bank will be made whole, and “no losses will be borne by the taxpayer.”
Reports said, this collapse rocked the world’s financial markets and left billions of dollars’ worth of deposits stranded.
The shut down of Signature Bank marked the third largest failure in US banking history, after Silicon Valley Bank and Washington Mutual.
No comment yet
Signature Bank had deposits totaling approximately $88.59 billion as of December 31, the department said in a statement. Signature Bank representatives did not immediately respond to a request for comment.
New York banking regulators appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of the bank’s assets. Signature Bank reported deposit balances totaling $89.17 billion as of March 8. As of December 31, it had approximately $110.36 billion in assets, according to New York state’s Department of Financial Services.
The bank’s failure followed Silicon Valley Bank’s Friday shutdown, the largest failure since Washington Mutual went bust in 2008 during the financial crisis. Washington Mutual still ranks as the largest bank failure in US history.
Signature Bank is a commercial bank and has private client offices in New York, Connecticut, California, Nevada and North Carolina. it had nine national business lines including commercial real estate and digital asset banking.
Signature Bank had had a long-standing relationship with former President Donald Trump and his family. It cut off ties with Trump in 2021 following the January 6 riots on Capitol Hill and urged Trump to resign.
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