After SVB, regulators close New York's Signature Bank

Updated : Mar 15, 2023 11:41
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Editorji News Desk

After the collapse of Silicon Valley Bank, New York's regulators have closed down The Signature bank. The bank came into the limelight last year due to the breakdown of the Crypto Exchange FXT. 

FTX had accounts with Signature Bank, but the bank claimed that these funds accounted for less than 0.1% of the company's total deposits. After FTX's demise in December, Signature announced it would lose up to 10 billion dollars in customer deposits for digital assets. The bank stated it would cap the share of deposits from any one digital asset client, bringing the percentage of deposits linked to cryptocurrencies to roughly 15-20% of its overall deposits.

A joint statement issued by Treasury Department, Federal Reserve, and Federal Insurance Deposit Corp., claimed that the depositors in The Signature bank will receive their money just like SVB depositors through "a similar systemic risk exception"

Till December 31, Signature Bank, with New York state charter and FDIC insurance, held total assets of about 110.36 billion dollars and total deposits of about 88.59 billion dollars.

Signature Bank

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