Over this past weekend, two banks – Signature Bank – collapsed. To protect the depositors, the regulators seized control after the banks failed to meet customer withdrawal requests.
Per the Federal Deposit Insurance Corporation (FDIC) statement released yesterday…
| Signature Bank, New York, NY, was closed on Sunday, March 12, 2023 by the New York State Department of Financial Services, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC transferred all the deposits and substantially all of the assets of Signature Bank to Signature Bridge Bank, N.A., a full-service bank that will be operated by the FDIC as it markets the institution to potential bidders. Banking activities will resume Monday, March 13, 2023, including on-line banking. Depositors and borrowers will automatically become customers of Signature Bridge Bank, N.A. and will continue to have uninterrupted customer service and access to their funds by ATM, debit cards, and writing checks in the same manner as before. Signature Bank’s official checks will continue to clear. Loan customers should continue making loan payments as usual. The transfer of all the deposits was completed under the systemic risk exception approved earlier today. All depositors of the institution will be made whole. No losses will be borne by the taxpayers. Shareholders and certain unsecured debt holders will not be protected. Signature Bank Locations Near Yonkers Signature Bank, 1-C QUAKER RIDGE ROAD BRANCH Full Service Brick and Mortar Office 1-C Quaker Ridge Road New Rochelle, NY 10804 Signature Bank, HAMILTON AVENUE BRANCH Full Service Brick and Mortar Office 360 Hamilton Avenue White Plains, NY 10601 Signature Bank, Hunst Point Avenue Branch Office Full Service Brick and Mortar Office 1360 East Bay Avenue Bronx, NY 10474 Signature Bank, MADISON AVENUE OFFICE Full Service Brick and Mortar Office 1020 Madison Avenue New York, NY 10021 Signature Bank, GREENWICH BRANCH Full Service Brick and Mortar Office 75 Holly Hill Lane Greenwich, CT 06830 Signature Bank, GREAT NECK BRANCH Full Service Brick and Mortar Office 40 Cuttermill Road Great Neck, NY 11021 Signature Bank, 36-36 33RD STREET LONG ISLAND CITY Full Service Brick and Mortar Office 36-36 33rd Street Astoria, NY 11106 Signature Bank, JACKSON HEIGHTS BRANCH Full Service Brick and Mortar Office 78-37 37th Street Jackson Heights, NY 11372 Signature Bank, WEST 57TH STREET BRANCH Full Service Brick and Mortar Office 50 West 57th Street New York, NY 10019 Signature Bank, THIRD BRANCH Full Service Brick and Mortar Office 950 Third Avenue New York, NY 10022 Signature Bank, 300 PARK AVENUE BRANCH Full Service Brick and Mortar Office 485 Madison Avenue New York, NY 10022 Signature Bank, 261 MADISON AVENUE Full Service Brick and Mortar Office 261 Madison Avenue New York, NY 10017 Signature Bank Full Service Brick and Mortar Office 565 5th Ave New York, NY 10017 Signature Bank, 1400 BROADWAY BRANCH OFFICE Full Service Brick and Mortar Office 1400 Broadway, 26th Floor New York, NY 10018 Signature Bank, PARK AVENUE SOUTH BRANCH Full Service Brick and Mortar Office 200 Park Avenue South New York, NY 10003 Signature Bank was founded in 2001 by former executives and employees of Republic National Bank of New York after its purchase by HSBC. It focused on wealthy clients and built personal relationships with them. For most of its history, it had offices only in the New York City area. In the late 2010s, it began to expand geographically and in terms of services, though it was most noted for its 2018 decision to open itself to the cryptocurrency industry. By 2021, cryptocurrency businesses had represented 30 percent of its deposits. Banking officials in the state of New York closed the bank on March 12, 2023, two days after the failure of Silicon Valley Bank (SVB). After SVB failed and in light of the closure of the cryptocurrency-friendly Silvergate Bank earlier in the week, nervous customers withdrew more than $10 billion in deposits. It was the third-largest bank failure in U.S. history. The FDIC was appointed as the bank’s receiver and immediately established Signature Bridge Bank, N.A. (see Bridge bank) which the FDIC would operate as it marketed its assets to bidders. The FDIC appointed Greg D. Carmichael, former president and CEO of Fifth Third Bancorp, as the bridge bank’s CEO. As of December 2022, 90 percent of $89 billion in bank deposits exceeded the maximum insured by the FDIC. |