NY Regulators Seize Signature Bank Deposits Assured by Bailout

13 mars 2023

On Sunday, it was announced that the New York Department of Financial Services (DFS) had taken over Signature Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver.

This decision was made in order to protect depositors and boost public confidence in the U.S. banking system, following the collapse of Silvergate Bank and the failure of Silicon Valley Bank (SVB).

The U.S. government, after consulting with Treasury Secretary Janet Yellen, approved a plan that fully protects all depositors and ensures that funds will be available for all depositors on March 13. The resolution will not be funded by taxpayers. In addition to SVB, the resolution will also be applied to Signature Bank. The Federal Reserve has also created a Bank Term Funding Program (BTFP) to support failed banks and their depositors.

The U.S. central bank stated that it is closely monitoring financial markets and that the U.S. banking system is strong and resilient.