2023-03-13
New York-based Signature Bank, a crypto-friendly bank, was shut down by a government agency on March 12.
The Federal
Reserve has announced in a March 12 statement in term
of their decision was made in conjunction with the US Federal Deposit Insurance
Corporation (FDIC) to protect the US economy and strengthen public confidence
in the banking system.
In a statement, New York Financial Services Director Adrianne Harris said the
Federal Depository Insurance Corporation (FDIC) had taken over the bank's
assets. And this is the collapse of the third bank in less than a week. After
Silvergate and the closure of Silicon Valley Bank
Harris said,
as actions had happened “to protect depositors.”
"Signature
Bank is a New York state-chartered commercial bank and is FDIC-insured, with
total assets of approximately $110.36 billion and total deposits of
approximately $88.59 billion as of December 31, 2022," Harris' statement
said. "DFS is 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."
"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 resolution of Silicon Valley Bank, no losses will be borne by the taxpayer," the joint Fed/FDIC/Treasury statement said.
Related to this Joint Press Release on March 12,2023
Signature Bank is one of the major banks in the cryptocurrency industry, which, according
to FactSet, has fallen nearly 40% this year. After crypto banks like Silvergate
Capital went out of business.
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