New York-based Signature Bank has been officially shut down and is being taken over by the  New York Department of Financial Services (NYDFS). The regulator acquired the bank under Section 606, citing ‘systematic risk’.

A senior member of the U.S. Treasury has this to say:

“The actions that we took today were designed to limit the consequences of the depositor outflows from Silicon Valley and from Signature and to reduce any spillover effects.” “The firms are not being bailed out. The depositors are being protected. he operations, the ability to keep payrolls working is really important.”

This comes into action as startup-lender Silicon Valley Bank (SVB) witnessed some hammering to its business, which may create repercussions on the national and global banking systems.

Signature Bank had more than $88.5 billion in deposits as of December 31 2022, and was regarded as one of the most crypto-friendly banks in the United States.

Sources:

https://cointelegraph.com/news/signature-bank-closed-by-new-york-banking-authorities

https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20230312

https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm

https://www.businesstimes.com.sg/international/svb-depositors-will-have-access-all-their-money-monday