US regulators shut down a second bank Sunday in a bid to stem the banking crisis after Silicon Valley Bank went down last week.
Signature Bank, a New York-based, cryptocurrency friendly financial institution, was closed Sunday by its state chartering authority, according to a joint statement from the Treasury Department, Federal Reserve and FDIC.
All depositors will be made whole and taxpayers won’t be on the hook for any losses, the US government said.
The New York Department of Financial Services said in its own press release Sunday that it has taken possession of Signature Bank, which had about $110.36 billion in total assets and $88.59 billion in deposits as of Dec. 31, 2022.
“DFS is in close contact with all regulated entities in light of market events, monitoring market trends, and collaborating 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,” according to the statement.
Depositors of SVB, which collapsed Friday, will have “access to all of their money” starting Monday and “no losses will be borne by the taxpayer,” the feds also said Sunday.
Federal agencies stressed the US banking system “remained resilient and on a solid foundation” in its announcement.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the federal government stated. “This step will ensure that the US banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
[Written in collaboration with other media outlets with information from the following sources]
