Signature Bank shuts down, becomes victim after the fallout of Silicon Valley Bank

The collapse of Signature Bank, with more than $110 billion in assets, is the third-largest bank failure in US history.

However, depositors at the New York-based Bank will have full access to their deposits starting 13 March, and the US taxpayers will not have to foot the bill, state the banking regulators. They said, “All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”

The US Fed, Treasury as well as FDIC, i.e., the Federal Deposit Insurance Corporation, mentioned that the said bank’s depositors would be ‘made whole.’ Moreover, the Fed also revealed that it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.

The three agencies, in a joint statement, stated, "We are taking decisive actions to protect the US economy by strengthening public confidence in our banking system."

It must be noted that Signature is one of the prominent banks in the crypto industry. As of Friday, it had a market value of $4.4 billion, as per the reports. Interestingly, Signature Bank had a long-standing relationship with the former US President, Donald Trump, but in 2021, it cut ties with the previous President.

Fall of Silicon Valley Bank       

Last Friday, Silicon Valley Bank, which had assets to the tune of $212 billion in 2022, caved in, which is regarded as the biggest retail banking failure since the global financial crisis. Its fallout in the US has sent tremors on Wall Street.

Its collapse occurred just days after the tech-focused institution reported that it was struggling, triggering a run on the bank's deposits.