The Federal Reserve is based in New York, which also has clients from the crypto industry. Signature Bank announced that it was shut down by state regulators on Sunday.
Inspector of the New York Department of Financial Services Adrianne Harris In a statement, the Federal Depository Insurance Corporation (FDIC) has taken over the trusteeship of the bank. This marks the third bank collapse in a week following the voluntary liquidation of Silvergate Bank and the closure of Silicon Valley Bank.
Harris explained that the action was taken “to protect depositors.”
In a joint statement from the Federal Reserve, FDIC, and the U.S. Department of the Treasury, outlining the steps federal regulators will take to protect depositors at Silicon Valley Bank, all depositors who also use Signature Bank will be made full.
Koinfinans.com As we reported, Harris’ statement drew attention to the following statements: “Signature Bank operates as a commercial bank registered in the state of New York 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. ”
“DFS stays in close contact with all regulated entities in light of market events, monitors market trends and collaborates closely with other state and federal regulators to protect consumers, ensure the health of our regulated entities, and maintain the stability of the global financial system.”
“We are also announcing a similar systemic risk exemption for Signature Bank, New York, New York, which has been closed by state statute authority today. No depositor with a connection to this institution will be victimized. “As with Silicon Valley Bank’s resolution, no loss will be borne by taxpayers.”
This move comes just months after Signature announced that it would reduce its exposure to the crypto industry.
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