Regulators close Signature bank, announce plan to make depositors whole

By Hannah Lang

(Reuters) -The New York State Department of Financial Services announced Sunday that it had taken control of Signature Bank in New York and named the U.S. Federal Deposit Insurance Corp receiver. This was the second bank failure in a matter of hours.

Signature Bank had deposits amounting to $88.59 billion at Dec. 31, according the department in a statement.

Signature Bank didn’t immediately respond to our request for comment.

In a joint statement, the U.S. Treasury Department and other regulators stated that Signature Bank depositors will be compensated. “no losses will be borne by the taxpayer.”

(Reporting by Hannah Lang, Washington; Editing By Leslie Adler & Lisa Shumaker).