Sunday New York Signature Bank was closed due to systemic risks. This was reported in a statement signed by US Treasury Secretary Janet Yellen, Federal Reserve System (FRS) Chairman Jerome Powell and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Grunberg. The statement also indicates that similar measures have been taken against Silicon Valley Bank (SVB) in California.
As noted, all Signature Bank depositors will have access to their deposits, just as in the case of SVB.
It was previously reported that as of March 13, all Silicon Valley Bank depositors will also have access to their deposits.
In connection with the bankruptcy of SVB, there were fears that other US banks may also face with problems. Against this background, investors began to sell shares of similar SVB banks, such as First Republic, Signature Bank and Western Alliance. Many of these financial institutions cater to first-time clients and have investment portfolios similar to SVB.
SVB was shut down by California regulators on March 10, the worst bank failure in the US since the 2008 financial crisis. All insured deposits were transferred from SVB to Deposit Insurance National Bank of Santa Clara. The collapse of the SVB is associated with an increase in the Fed's key rate, which led to the depreciation of assets on the balance sheets of many financial institutions. According to the FDIC, the total losses of banks in 2022 amounted to $620 billion.