Discover Top American-Made Products!
Support local craftsmanship with these high-quality, American-made items—shop now on Amazon!
Shop NowThe official closure of New York-based Signature Bank on Sunday, March 12 has marked the third largest failure in U.S. banking history.
This breaking news comes just two days after state regulators shut down Silicon Valley Bank that left billions stranded in deposits.
New York state’s Department of Financial Services revealed that Signature Bank was taken over by the Federal Deposit Insurance Corporation (FDIC), a bank that held over $110 billion in assets and $88 billion in deposits at the end of 2022.
Both the U.S. Treasury Department and bank regulators have reassured in a statement that depositors of both banks will be made whole and “no losses will be borne by the taxpayer.”
Employees gathered at the Signature Bank’s headquarters in Manhattan on March 12 for meetings on the closure. At this time, representatives for the lender have not responded to request for comment.
Silicon Valley Bank’s shutdown marked the second largest bank collapse in U.S. history, behind the collapse of Washington Mutual back in 2008.
The FDIC established a “bridge” successor bank to enable customers from both banks to access their funds today, March 13 and will automatically make depositors and borrowers customers of the bridge bank.
Prior to its shutdown, Signature was a commercial bank with private client offices across the entire U.S. as well as having had nine national business lines.
Signature was also known to have had a long-standing relationship with Donald Trump and his family, providing checking accounts and helping to finances multiple family ventures, before cutting ties with the former president in 2021.
New York Governor Kathy Hochul released a statement in reaction to the closure:
“Many depositors at these banks are small businesses, including those driving the innovation economy, and their success is key to New York’s robust economy.”
