Regulators shut down Signature Bank two days after Silicon Valley Bank collapse

FSunday’s announcement by state and federal banking regulators was that Signature Bank, the principal financial institution for cryptocurrency companies, had been closed.

In a joint statement by the banks, the bank announced that it had decided to shutter its New York-based branch. Federal Reserve, Treasury DepartmentAnd Federal Deposit Insurance Corporation. The FDIC would become customers of Signature Bank and Silicon Valley Bank, according to the trio. Friday collapse There were fears of a banking crisis. Signature’s failure is the third largest in U.S. bank history, while SVB comes in at the second.

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“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” The statement on SVB was read and added that “no losses will be borne by the taxpayer.”

New York bank regulators announced in a separate statement Sunday, that the closure had been approved. “in light of market events, monitoring market trends, and collaborating closely with other state and federal regulators” To protect consumers as well as the financial system.

FDIC also created a “bridge” Signature customers will be able to access their funds Monday morning at the successor bank. Greg Carmichael CEO of Fifth Third Bancorp was named chief executive of the bridge banking institution by regulator.

These moves are made by federal and state regulators to stop a major bank crisis spreading.

New York Gov. Kathy HochulDemocracies