Signature Bank, which has 40 branches across the country including one in Woodmere and one in Rockville Centre, was closed by state regulators as part of the same federal action that closed Silicon Valley Bank in California.
Officials said that depositors of both banks had full access to their money on March 13. Taxpayers will not shoulder the burden for these financials losses, officials added. Signature, founded in 2001, is the third largest failure in U.S. banking history.
“Shareholders and certain unsecured debtholders will not be protected,” federal officials stated in a March 12 news release. “Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks as required by law.”
The Federal Reserve Board said it will make additional money available to what the board called “eligible depository institutions” to help ensure that those banks can meet their depositors needs.
New York Gov. Kathy Hochul said that she and Adrienne Harris, superintendent of the state’s Department of Financial Services, have been partnering with federal officials to help stabilize the banking sector and protect the money of New Yorkers.
“… I hope that these actions will provide increased confidence in the stability of our banking system,” Hochul said in a statement, adding that she appreciated the actions taken by federal regulators. “Many depositors at these banks are small businesses, including those driving the innovation economy, and their success is key to New York’s robust economy.”