Federal Regulators Shut New York’s Signature Bank Following The SVB Collapse

Feb 13, 2023

Federal Regulators Shut New York's Signature Bank Following The SVB Collapse

Signature Bank New York, a bank that handled cryptocurrency firms, was shut down on March 12 by a state statutory authority, the New York Department of Financial Services (DFS), according to U.S. regulators.

All depositors will be able to get 100% of their money, according to a joint statement from Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg. The taxpayer will not suffer any losses, as in the case of Silicon Valley Bank.

The agencies said that shareholders and some holders of unsecured debts would not be protected, and senior management was also removed. Any losses of the Deposit Insurance Fund to support uninsured depositors will be recovered through a special assessment of the banks as required by law.

Signature Bank's deposits and assets were immediately transferred to Signature Bridge Bank, N.A., a full-service bank to be managed by the FDIC as it sells the institution to potential bidders, a separate statement said.

Clients will be allowed to resume their financial operations, including internet banking, on March 13, while loan payments must be paid.

All depositors and customers with loans 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."

According to authorities, shareholders and certain unsecured debt holders will not be protected.

As of December 31, 2022, Signature Bank has total assets of $110.4 billion and total deposits of $82.6 billion.

The FDIC will run the new bank, Signature Bridge Bank, N.A., to maximize the institution's value for a future sale and preserve banking services in the communities formerly served by Signature Bank.

The FDIC states that it acquires deposits and certain other obligations of a bankrupt bank and purchases certain assets. The bridge bank structure is intended to 'bridge' the gap between a bank's failure and the point at which the FDIC can stabilize the institution and undertake an orderly resolution.

The Federal Reserve Board also said on Sunday that it would provide extra cash to qualifying depository institutions to ensure that banks can satisfy the demands of all its depositors.

The agencies claimed, considering this situation, that the U.S. banking system remains resilient and on solid footing, largely thanks to reforms enacted after the financial crisis that provided stronger safeguards for the banking industry. These reforms, combined with today's actions, demonstrate their commitment to taking the necessary steps to ensure the safety of depositors' savings. This is the second bank closure in the past three days.

Signature Bank had 40 branches in the United States, including New York, California, Connecticut, North Carolina, and Nevada.

Subscribe Our Newsletter

Carbon Capture Starts. Which Firms Excel?

Lasha

Carbon Capture Starts. Which Firms Excel?

Carbon capture and storage have become a popular solution to greenhouse gas emissions and global warming. These Firms are way ahead of their competitors.

Companies
South Korean CBDC – 7 South Korean Banks to Join Issuing The Digital Currency Since cryptocurrencies arrived on the financial scene and changed how people transact and transfer money, central banks have become more interested in developing their own virtual payment systems. After Russia, China, Nigeria, India, and Jamaica, South Korea is taking a major step toward introducing its own Central Bank Digital Currency in an upcoming pilot program involving the public and some major banks. The initiative aims to test the feasibility of a digital currency within the existing financial system, enabling a limited number of citizens to transact with CBDC at selected merchants and Points of Sale. This move aligns with the global trend of central banks exploring digital currencies to enhance payment efficiency, reduce transaction costs, and modernize the financial landscape. South Korea CBDC Pilot Program Bank of Korea (BOK), in collaboration with financial regulators, announced an initiative to test the rolling out of CBDC involving seven major banks and 100,000 participants. The pilot program “Project Hangang” is scheduled to run from April to June 2025, focusing on testing deposit tokens issued by banks and backed by the CBDC. These banks include KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, NH NongHyup Bank, Industrial Bank of Korea (IBK), and Busan Bank. These tokens will be used for transactions in both online and offline retail environments, allowing the government and financial institutions to evaluate their effectiveness. Users and Merchants Participation The BOK is expected to announce the project by the end of March, asking 100,000 South Koreans to participate in the pilot and convert their traditional bank deposits into digital tokens for payments. Individuals will be limited to a maximum holding of 1 million WON (approximately $687) and a total transaction cap of 5 million WON during the trial’s duration. Various merchants, including convenience stores, supermarkets, coffee shops, and online platforms, will accept these tokens as payment. Notable participants include 7-Eleven, Hanaro Mart, Ediya Coffee, Silla University, and Hyundai Home Shopping. This will help assess the practicality and usability of the CBDC across different retail settings. Global Adoption of CBDC The South Korean CBDC initiative is part of a broader global trend, with many countries exploring digital currencies to modernize their financial systems. The Bank for International Settlements (BIS) has been actively promoting CBDC projects worldwide, with major economies such as China, the European Union, and the United States conducting their own trials. China’s digital Yuan e-CNY is already in an advanced phase, with widespread adoption in various sectors. The European Central Bank is also working on a digital Euro, while the US Federal Reserve is researching the potential implications of a digital Dollar. These initiatives aim to improve payment efficiency, enhance financial inclusion, and strengthen monetary policy frameworks. Conclusion South Korea’s CBDC pilot marks a significant step toward digital financial transformation. By involving the public, key banking institutions, and merchants, the trial will offer critical data on the viability of digital currencies. As more countries explore CBDCs, these findings could influence future implementations worldwide, paving the way for a more efficient payment system.

Hazem

South Korean CBDC – 7 South Korean Banks to Join Issuing The Digital Currency

South Korean CBDC will be tested in a Central Bank-led pilot project involving 100,000 users and 7 issuing banks. Here’s what we know about this project.

Crypto
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Constantine

Top 7 Liquidity Providers of 2022
People and institutions have traded on the Forex market for a long time because of its relation to fiat trading pairs. However, despite cryptocurrency's quick ascent, traders found a whole new spectrum of applications for the digital money they were utilizing.

discover
How to Become a Liquidity Provider

Liquidity Provider

How to Become a Liquidity Provider?

Let's find out what is the role of a liquidity provider, basic steps how to become a liquidity provider, partnership conditions for brokerage companies and more.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.