State regulators closed Signature Bank on Sunday, New York-based bank, in the third largest failure in US banking history. Two day before, the authorities closed Silicon Valley Bank due to a collapse that stranded billions in deposits.
The Federal Deposit Insurance Corporation (FDIC) took hold of Signature, and according to New York State’s Department of Financial Services the bank had 88.59 billion dollars in deposits and 110.36 billion dollars in assets by the end of last year.
According to the U.S. Treasury Department and other bank regulators, depositors of both banks will be made whole and the taxpayer will not endure any losses.
Signature Bank failure took place after the SVB collapse on Friday. The SVB collapse is the second largest in U.S. history after the 2008 financial crisis collapse of Washington Mutual.
The FDIC created a bridge bank on Sunday as a successor, to enable customers to access their fund on Monday the 13th.
According to Reuters, the FDIC said that depositors and borrowers of Signature Bank will automatically be customer of the successor.
Former Fifth Third Bancorp Chief Executive Greg Carmichael has been name as CEO of the bridge bank.
Signature Bank was a commercial bank with private client offices in Connecticut, California, New York, Nevada, and North Carolina. The bank also had nine national business lines including digital asset banking and commercial real estate.