Days after the collapse of Silicon Valley Bank (SVB), New York regulators shut down Signature Bank in New York on March 12, in a move to prevent further financial crisis. US Federal Reserve and FDIC (Federal Deposit Insurance Corporation) released a joint statement, “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,” on Sunday evening.
The Signature Bank in New York was known for its transactions with the cryptocurrency industry. The fall of the bank will have an impact on the crypto industry as quarter of its deposits were from cryptocurrency industry. The Bank had assets worth $110.36 billion and deposits worth $88.59 billion in December last year as per NY state’s Department of Financial Services. Both the Fed and FDIC have announced that it is working to make funds accessible to depositors and will try to ensure that "no losses will be borne by the taxpayer". But equity and bondholders of the bank have no safety net and will face a wipe-out in the collapse.
The successive collapse of SVB and Signature bank has already wiped off $100 billion of the market value of the US Banks. The bank had businesses in commercial real estate, digital asset banking.
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