A man walks into Signature Bank in New York City on March 12, 2023.
Reuters
U.S. regulators said Sunday they were shutting down New York-based Signature Bank, another financial institution they shuttered after the collapse of Silicon Valley Bank.
“We are also announcing a similar systemic risk exemption for Signature Bank, New York, New York, which was closed today by its state charter authority,” the Treasury Department, the Federal Reserve and the FDIC said in a joint statement Sunday evening.
Banking regulators said depositors at Signature Bank will have full access to their deposits.
“All depositors of this institution will be made whole. As with the decision of Silicon Valley Bank, no losses will be borne by taxpayers,” the regulators said.
Signature is one of the most important banks in the cryptocurrency industry. Per As of Dec. 31, Signature had $110.4 billion in total assets and $88.6 billion in total deposits, according to a securities filing.
To contain the damage and avert a major crisis, the Fed and the Treasury Department created an emergency program to freeze deposits at Signature Bank and Silicon Valley Bank using the Fed’s emergency lending authority.
Regulators closed SVB on Friday and seized its deposits in the biggest US bank failure since the 2008 financial crisis – and the second biggest ever. The dramatic moves come days after the tech-focused institution reported it was struggling, sparking a run on the bank’s deposits.
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