In yet another blow to banking system, State regulators closed New York-based Signature Bank on Sunday, just two days after California authorities closed Silicon Valley Bank (SVB).
New York banking regulators appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of the bank’s assets. Signature Bank, a New York state-chartered commercial bank that’s FDIC-insured, reported deposit balances totaling $89.17 billion as of March 8. As of Dec. 31, it had approximately $110.36 billion in assets, according to New York state’s Department of Financial Services. The Signature failure is the third-largest in US banking history.
US authorities announced that they will “fully” protect depositors in collapsed SVB and the US Federal Reserve said that it will lend to banks if needed to meet withdrawals.
The United States Treasury Department and other bank regulators said in a joint statement that all depositors of Signature Bank will be made whole, and “no losses will be borne by the taxpayer.” Depositors at the bank will have access to their money under “a similar systemic risk exception” to one that will allow SVB clients to get their money on Monday.
Signature Bank was a New York-based full-service commercial bank with 40 private client offices throughout New York, Connecticut, California, Nevada, and North Carolina.
|Industry||Banking Financial Services|
|Founded||1 May 2001|
|Closed||March 12, 2023|
|Headquarters||New York City, New York, U.S.|
|Net income||US$918 million (2021)|
|Total assets||US$118 billion (2021)|
|Total equity||US$6.84 billion (Q2 2021)|
|Number of employees||1,854 (2021)|
|Parent||Federal Deposit Insurance Corporation|
|Subsidiaries||Signature Securities Group Corporation |
Signature Financial LLC
Signature Public Funding Corp.
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