US-based New York-based Signature Bank has been shut down by regulators. It became the second US bank to close in less than a week after the closure of Silicon Valley Bank (SIVB). The Federal Deposit Insurance Corporation (FDIC) has been appointed as the receiver. This appointment generally means looking after depositors and other business customers.
Silicon Valley Bank, one of the world’s most important lenders to technology startups, on Friday forced the US federal government to step in. Statistics show that the shares of the distressed bank have fallen by more than 60%. In the meantime, to protect depositors, the FDIC has ordered Signature Bridge Bank NA.
All deposits and all assets of Signature Bank are transferred to Signature Bridge Bank, a full-service bank that will be regulated by the FDIC, the FDIC said in a statement.
A signature bank is usually a chartered national bank, operating under a board appointed by the FDIC. It accepts deposits and certain other liabilities and purchases certain assets of the failed bank. Signature Bank had 40 branches across the country. The bank also had branches in New York, California, Connecticut, North Carolina, and Nevada.
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