U.S Authorities Shut Down Signature Bank After SVB Closure
- Customers of SVB will have access to their funds beginning Monday.
- Signature Bank customers will have limitless access to their money.
Signature Bank was shut down by US authorities after the collapse of Silicon Valley Bank made headlines. Specifically, the New York-based bank has been shuttered claiming “systemic risk,” according to a joint statement made today by the Federal Reserve, Treasury, and FDIC.
Customers of SVB will have access to their funds beginning Monday, according to the statement. It also made notice of the unexpected closure of the New York bank. Customers of Signature Bank, on the other hand, will have limitless access to their money, as reported by CNBC.
Greatest Bank Failure Since 2008
The financial world has been rattled by the abrupt and unexpected demise of SVB Financial. But, US authorities have already announced the collapse of another bank as the sector prepares for the fallout from the greatest bank failure since 2008.
The Federal Reserve has specifically reported that Signature Bank has been shut down by US authorities. Afterwards, claiming identifying a possible “systemic risk,” inside the statement prepared by the Federal Reserve, Treasury, and FDIC.
The statement read:
“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. 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.”
Signature continues to be a leading crypto sector bank with $110.4 billion in assets and $88.6 billion in deposits. On the other side, Signature Banks’ demise could have been influenced by news of ongoing unrealized losses in the US banking industry.
