Signature Bank becomes the third-largest bank failure in U.S. history, behind Silicon Valley Bank and Washington Mutual in 2008.
Just two days after shutting down Silicon Valley Bank, regulators announced Sunday that the New York-based Signature Bank had been seized, citing a"systemic risk exemption.""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," said the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation in a joint statement Sunday evening.
The statement also noted that shareholders and certain"unsecured debtholders" would not be protected. Senior management was also removed. "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law," the statement read."The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry."
Following the bank closure, President Joe Biden took to Twitter to say that he is"firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again." President Biden also reassured the American people and businesses that their"bank deposits will be there when they need them."
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto-friendly Signature Bank shut down by regulators, after collapses of Silicon Valley Bank, SilvergateState authorities closed Signature Bank Sunday, after Silicon Valley Bank was shut down by regulators on Friday in the biggest bank failure since the 2008...
Read more »
U.S. Treasury says Silicon Valley Bank, Signature Bank 'not being bailed out'New policies adopted on Sunday by U.S. banking regulators will 'wipe out' equity and bondholders in Silicon Valley Bank and Signature Bank of New York while protecting all customer deposits, a senior U.S. Treasury official said.
Read more »
Regulators close New York's Signature Bank following Silicon Valley Bank collapseThe New York Department of Financial Services announced on Sunday that it has taken possession of Signature Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as the bank's receiver.
Read more »
Regulators shut down Signature Bank two days after Silicon Valley Bank collapseFederal and state banking regulators announced Sunday that Signature Bank, one of the main financial institutions for cryptocurrency firms, had been shut down.
Read more »
Signature Bank shut down in connection with Silicon Valley Bank collapseFederal regulators said Sunday Signature Bank has been shuttered, marking the second massive bank failure after the collapse of Silicon Valley Bank last week.
Read more »
How Silicon Valley Turned on Silicon Valley BankThe fallout from Silicon Valley Bank threatens to engulf Silicon Valley—and has put the rest of the banking system on edge
Read more »