US Regulators have Closed Signature Bank

Joshua Ramos
Source: Reuters

Following the highly-publicized collapse of Silicon Valley Bank, US regulators have closed Signature Bank. Specifically, the New York-based bank has been closed citing “systemic risk,” according to a joint statement released today by the Federal Reserve, Treasury, and FDIC.

The statement assured that SVB depositors will have access to their money on Monday. Additionally, it noted the closure of the New York-based bank in a surprise development. Conversely, Signature Bank depositors will have full access to deposits according to CNBC.

Regulators Close Signature Bank

The sudden and unexpected collapse of SVB Financial has shaken the financial sector. Yet, as the industry braces for what’s to come from the largest bank failure since 2008, the US regulators have already announced the closure of yet another bank.

Specifically, the Federal Reserve has announced that US regulators have closed Signature Bank. Subsequently, stating citing a potential “systemic risk,” within the statement conceived by the Federal Reserve, Treasury, and FDIC

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“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority.” the statement read. “All depositors of this institution will be made whole. As with the resulting of Silicon Valley Bank, no losses will be borne by the taxpayer,” it added.

Signature remains a prominent bank in the crypto industry, holding $110.4 billion in total assets, and $88.6 billion in total deposits, according to CNBC. Conversely, previous reports of unrealized losses for US banks could have played a part in Signature Banks’ eventual closure.