Following “Silicon Valley Bank” (SVB), “Signature Bank” with similar portfolio shares in the United States closed. “The New York state financial regulator made this decision due to systemic risks,” the US Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation said in a joint statement.
“All bank depositors will have full access to their deposits, and the taxpayer will not suffer any loss from these processes,” the statement states.
The departments emphasize that the US banking system remains stable mainly due to reforms implemented after the 2008 financial crisis. “These reforms, combined with today’s actions, demonstrate our commitment to taking the necessary measures to ensure the safety of depositors’ savings,” the release states.
According to the New York Department of Financial Services, Commercial Signature Bank had about $110.36 billion in total assets and $88.59 billion in total deposits as of Dec. 31, 2022.
The sudden closure of the bank is linked to large-scale layoffs and cost restructuring at Silicon Valley technology companies.
