The upheaval in the banking sector in America (US Banking Crisis) is not taking its name to stop. After Silicon Valley Bank (SVB), now another bank has been locked. Signature Bank, which is called crypto friendly, has been temporarily closed. This bank had a stock of cryptocurrency and in view of its risk, it has been decided to keep this regional bank of New York closed for some time.
$110 billion in assets
According to a report published on Business Today, after Silicon Valley Bank, Signature Bank has become the next victim of the ongoing banking turmoil in America. The Federal Deposit Insurance Corporation (FDIC) took over Signature Bank, which had $110.36 billion in assets at the end of last year, while the bank had $88.59 billion in deposits, according to New York State’s Department of Finance Services. .
Third major crisis since 2008
This is the third biggest failure in US banking history, just two days before Silicon Valley Bank was shut down. It was the second largest shutdown after Washington Mutual, which collapsed during the financial crisis, and now Signature Bank. Let us tell you that the biggest crisis in America’s banking sector came in the year 2008. That year the banking firm Lehman Brothers declared itself bankrupt. After this, there was an economic recession in the whole world including America and the back of the economy was broken.
Efforts to overcome the crisis continue
Signature Bank is a regional bank of New York and last Friday there was a decline in the shares of this bank. However, amid the banking crisis, the US Treasury Department and other bank regulators said in a joint statement that all depositors of Signature Bank and Silicon Valley Bank would not suffer any loss. In this regard, the US Federal Reserve (US Fed) has also called an emergency meeting on March 13, 2023, in which measures to deal with the banking crisis are to be discussed.
Provides services including NY-CA
According to the report, the Federal Deposit Insurance Corporation (FDIC) has said that a bridge bank has been set up, which will enable the bank’s customers to access their funds. According to the FDIC, Signature Bank depositors and borrowers will automatically become Bridge Bank customers. The regulator has nominated former Fifth Third Bancorp CEO Greg Carmichael as Bridge Bank CEO.
Let us tell you that Signature Bank is a commercial bank providing customer services in New York, Connecticut, California, Nevada and North Carolina. Nearly a quarter of its deposits came from the cryptocurrency sector by September 2022, but the bank announced in December that it would reduce its crypto-related deposits to $8 billion.
What did Joe Biden say on the banking crisis?
Silicon Valley Bank is the 16th largest bank in America. It is America’s main bank providing financial support to new-age tech companies and venture capital investment companies. However, the US Federal Reserve has increased interest rates in the last 18 months. Because of this, such companies have suffered huge losses. US President Joe Biden has said about this banking crisis that I am committed to holding those responsible for this mess fully accountable and continuing my efforts to strengthen oversight of large banks, so that Let us not get into this situation again.
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