Regulators close New York’s Signature Bank following Silicon Valley Bank collapse

The New York Department of Financial Services introduced Sunday that it has taken ownership of Signature Bank and appointed the Federal Deposit Insurance Corporation (FDIC) because the financial institution’s receiver. The transfer comes two days after Silicon Valley Bank collapsed as depositors rushed to withdraw budget.

The financial institution is FDIC-insured and had belongings of round $110.36 billion, with general deposits of about $88.59 billion as of Dec. 31, 2022, DFS mentioned in a remark. Both figures had been kind of part of what SVB had on the finish of 2022, consistent with the FDIC.

All depositors shall be made complete, the Federal Reserve, Treasury Department and FDIC mentioned Sunday in a joint remark. 

“Shareholders and certain unsecured debtholders will not be protected,” the companies mentioned. “Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.”

The joint remark additionally mentioned that Silicon Valley Bank depositors would have get admission to to “all of their money” starting Monday. For each SVB and Signature Bank, “no losses associated by the resolution” of the banks can be borne by way of the taxpayer, the remark added.

Earlier Sunday, Treasury Secretary Janet Yellen advised “Face the Nation” that the government is not going to supply a bailout for SVB’s buyers. 

“We’re not going to do that again,” she mentioned. “But we are concerned about depositors, and we’re focused on trying to meet their needs.”