SYSTEMIC RISK

Second Bank Shuttered by Regulators After Silicon Valley Bank’s Collapse

Like Silicon Valley Bank’s depositors, Signature Bank’s customers will similarly be protected by the U.S. government.

Regulators seized control of another bank on Sunday, closing New York’s Signature Bank in an attempt to prevent a domino effect in the wake of the implosion of Silicon Valley Bank. The bank, a titanic figure in the crypto industry, was shuttered by New York’s state chartering authority. Its depositors will have access to “all” their money under “a similar systemic risk exception” to the one that will secure Silicon Valley Bank’s depositors, according to a joint statement issued on Sunday by the Treasury Department, the Fed, and the Federal Deposit Insurance Corporation. The move was made “in light of market events, monitoring market trends, and collaborating closely with other state and federal regulators” to protect customers. Signature’s failure marks the third-largest bank collapse in U.S. history, behind SVB and Washington Mutual in 2008.