After “Silicon Valley”… closing another bank in New York and a plan to compensate depositors

The United States announces the second bankruptcy case within days

Dubai – Al Arabiya.net

Published in: March 13, 2023: 08:44 AM GST
Last updated: March 13, 2023: 09:03 AM GST

The New York State Department of Financial Services said on Sunday that it had acquired Signature Bank and attached the status of recipient to the Federal Deposit Insurance Corporation, in the second bankruptcy case for a bank in as many days.

The administration stated in a statement that deposits with Signature Bank amounted to about $ 88.59 billion in total as of December 31.

Signature Bank did not respond to a request for comment.

The Treasury Department and other banking sector regulators said in a joint statement on Sunday that depositors at Signature Bank would be compensated and that “taxpayers will not bear any losses,” according to Archyde.com.

In a related context, US officials said that Silicon Valley Bank customers will be able to access their deposits, starting today, Monday.

“Depositors will have access to all their money starting Monday, March 13,” the US Treasury Department, the Federal Reserve (US Central Bank) and the Federal Deposit Insurance Corporation said in a statement.

“Taxpayers will not bear any losses related to the decision related to Silicon Valley Bank,” the statement continued.