Only two days after Californian authorities shut down Silicon Valley Bank, state regulators in New York shut down New York-based Signature Bank on Sunday.
This collapse rocked the world’s financial markets and left billions of dollars in deposits held by businesses and investors stranded.
The third-largest bank collapse in American history, Signature Bank, was announced by the U.S. Treasury Department and other bank authorities on Sunday.
All bank depositors will be compensated, and “the government will bear no losses,” the announcement read.
The Federal Deposit Insurance Corporation (FDIC) was appointed receiver for the bank’s assets by New York banking regulators.
As of March 8, Signature Bank reported deposit amounts of $89.17 billion. According to the Department of Financial Services of New York State, its assets as of December 31 were about $110.36 billion.