Signature Bank closed by New York banking authorities

Another crypto-friendly bank, New York-based Signature Bank, has been shut down by state licensing authorities as of March 12.

federal reserve system explained A March 12 statement said the decision was made in partnership with the Federal Deposit Insurance Corporation (FDIC) to protect the U.S. economy and strengthen public confidence in the banking system.

However, the Federal Reserve quickly realized that it was backing all depositors of signatory banks.

“All depositors of this institution will be full. Taxpayers will not bear the losses, similar to the Silicon Valley Bank resolution.”

“This step ensures that the U.S. banking system continues to play its vital role in protecting deposits and providing access to credit for households and businesses in a way that fosters strong and sustainable economic growth. will be done,” the statement added.

However, shareholders and certain unsecured debtors will not be protected, according to the statement.

The Federal Reserve added that it will provide additional funds to eligible depository institutions so that banks can meet the needs of all depositors.

This is a work in progress and more information will be added as it becomes available.