Facts

• On Sunday, New York bank regulators shut down Signature Bank to protect consumers and the financial network. The closing marks the third major bank collapse in less than a week.
• A joint statement from the US Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) announced the closing and said that: "as with the resolution of Silicon Valley Bank (SVB), no losses will be borne by the taxpayer. Shareholders and certain unsecured debtholders will not be protected."
• Signature Bank is the second well-known cryptocurrency bank to fail recently. Silvergate, valued at $4.4B, announced it would close and liquidate all assets last week. Security filings at the close of 2022 showed Signature Bank had more than $110B in assets.
• The bank held more than 40 branches across New York, California, Connecticut North Carolina, and Nevada. Its $83B in deposits were transferred to the FDIC-operated Signature Bridge Bank to "maximize the value of the institution for a future sale and maintain banking services in the communities formerly served by Signature Bank." Banking operations for existing consumers were expected to return on Monday.
• Barney Frank, a Signature Bank board member, blamed the bank's collapse on the fallout from the SVB failure. After the news of SVB shuttering, consumers reported that they felt more confident in banking with larger institutions such as JP Morgan Chase.
• With several banks shuttering, US regulators are facing a potential financial crisis. US Treasury Secretary, Janet Yellen, has committed to considering extraordinary measures to protect small banking institutions that may be at risk.