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New York state’s Department of Financial Services has taken possession of Signature Bank (NASDAQ:SBNY) to protect depositors, Superintendent Adrienne A. Harris said Sunday. All depositors of the institution will be made whole, federal banking regulators said.
The Federal Deposit Insurance Corp. (FDIC) was appointed receiver of the bank. Signature Bank (SBNY) is a New York state-chartered commercial bank and is FDIC-insured with total assets of ~$110.4B and total deposits of ~$88.6B as of Dec. 31, 2022, NY DFS said.
Signature Bank (SBNY) is the second bank to be taken over by the FDIC in the past week. The FDIC closed down Silicon Valley Bank, owned by SVB Financial (SIVB), on Friday after customers clamored to withdraw deposits.
Signature Bank (SBNY) stock fell 32% in the last two sessions of the week as investors worried that the SVB turmoil would spread to other banks.
The failure of Silicon Valley Bank has triggered actions by federal regulators, including the creation of a lending facility for banks to support their liquidity and a statement that all Silicon Valley Bank depositors will have full access to their funds on Monday.
The FDIC is reportedly seeking a buyer for Silicon Valley Bank with bids due Sunday afternoon for the failed bank.
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