Signature Bank was shut down by New York state financial regulators on Sunday as fallout from last week’s implosion of SVB Financial Group’s Silicon Valley Bank spread to other lenders.
Depositors at the New York-based bank will have access to their money under “a similar risk exemption system” to the one that will allow Silicon Valley Bank clients to access their money on Monday, the Treasury Department said. , the Federal Reserve and the Federal Insurance Deposit. Corp. said. in a joint statement Sunday
“All those who deposit in this institution can be fully,” the regulators said. “As with the Silicon Valley Bank resolution, no losses will be borne by the taxpayer.”
Signature Bank, a New York state-chartered commercial bank that is FDIC-insured, has total assets of about $110.36 billion and total deposits of about $88.59 billion as of Dec. 31, the New York Department of Financial Services said in a separate statement.
Signature Bank representatives did not immediately respond to a request for comment.
Silicon Valley Bank suddenly became the largest US lender to fail in more than a decade on Friday, collapsing less than 48 hours after outlining a plan to raise capital. The bank took a huge loss on the sale of its securities amid rising interest rates, spooking investors and depositors who quickly began withdrawing their money. Only on Thursday, investors and depositors tried to stomp about $42 billion.
US regulators are racing against the clock to find solutions for the failed Silicon Valley Bank and stop a potential contagion from spreading to other lenders. Treasury Secretary Janet Yellen said Sunday that she approved a resolution for Silicon Valley Bank “that fully protects all depositors.” Concern about the health of other small banks focused on the venture capital and startup communities has prompted regulators to consider extraordinary measures to protect financial institutions and their depositors.
The New York Department of Financial Services is in “close contact with all regulated entities due to market events, monitoring market trends and working closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate and preserve the stability of the global financial system,” Superintendent Adrienne A. Harris said in a statement from her agency.
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