Second Bank Shuts Down in the U.S. in One Week

Signature Bank has declared bankruptcy in the United States. This follows the earlier bankruptcy of Silicon Valley Bank (SVB) this week, as reported by RBC.

The New York state regulatory authority made this decision due to systemic risks, according to a joint statement from the U.S. Department of the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation.

All bank depositors will have full access to their deposits, similar to the case with SVB, and taxpayers will incur no losses. Reports indicate that top management has been removed from their positions.

The agencies emphasize that the U.S. banking system remains stable, thanks in large part to reforms implemented following the 2008 financial crisis. “These reforms, combined with today’s actions, demonstrate our commitment to taking the necessary steps to ensure the safety of depositors' savings,” the statement reads.

Commercial Signature Bank had approximately $110.36 billion in total assets and about $88.59 billion in total deposits as of December 31, 2022, according to the New York Department of Financial Services.