On March 12 - just 2 days after the bankruptcy of Silicon Valley Bank (SVB) shook the global financial world, the New York state regulator again ordered the closure of Signatutre Bank (SB) - a bank important commodity in the virtual currency industry, in an effort to prevent the crisis from spreading.
“We also announced a similar systematic risk exception for Signature Bank. This bank was also closed today (March 12),” the US Treasury, Fed, FDIC said in a joint statement on the night of March 12.
Bank officials said all depositors at SB will be paid in full and "taxpayers will not suffer any loss", according to Reuters. SB's bankruptcy was the third largest bank failure in US history.
The New York State banking regulator has designated the Federal Deposit Insurance Corporation (FDIC), an independent agency of the US government, as the receiver to handle SB assets. SB reported total bank deposits of approximately $110.36 billion as of December 31, 2022.
SB did not immediately comment.
The move comes after SVB was forced to cease operations on March 10 in the largest bank bankruptcy since the 2008 financial crisis and the second largest in US history. SVB is a leading lender among Silicon Valley tech startups, ranking 16th among the largest banks in the United States.
Meanwhile, SB is a commercial bank with offices for private clients in New York, Connecticut, California, Nevada and North Carolina, with nine national businesses including commercial real estate and digital banking.
As of last September, almost a quarter of SB deposits came from the crypto sector, but the bank announced in December of the same year that it would cut its crypto-related deposits by $8 billion. death.
In February, SB announced that its chief executive officer (CEO) Joseph DePaolo would move into a senior advisory role this year and that his successor would be the bank's chief operating officer (COO), Eric Howell. Mr. DePaolo has been the chairman and CEO of SB since the bank's launch in 2001.
SB used to have a close relationship with former US President Donald Trump and his family, providing checking accounts for Mr. Trump and his businesses, as well as funding some of the family's businesses. . SB ended its relationship with Mr. Trump in 2021 after the deadly riot in the Capitol (US congress) on January 6, 2021 and called for Mr. Trump to resign.