The US regulatory authorities informed that the depositors of the New York bank, closed this Sunday by the financial regulator of the state of New York, will be reimbursed without loss for the taxpayer.
After the collapse of Silicon Valley Bankthe New York authorities ordered the bank to close SignatureBank, linked to the world of cryptocurrencies.
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The US Department of the Treasury reported that depositors of the New York bank, closed this Sunday by the financial regulator of the state of New York, will be reimbursed without loss for the taxpayer.
Through a statement, the Fed announced “a similar exception for systemic risk for Signature Bank which has been closed today by your state incorporation authority. All depositors of this entity will be compensated. As with the Silicon Valley Bank resolution, the taxpayer will suffer no loss. Shareholders and some unsecured debtors will not be protected. Senior management has also been removed.”
Until this Sunday, Signature Bank offered escrow services for its clients’ digital assets, although it did not invest in or trade cryptocurrencies. According to the company itself, it does not have them on its own balance sheet, it does not keep them in custody or grant loans or loans guaranteed by said assets.,
The New York bank had initiated the withdrawal of digital assets after the explosion of FTX. However, the Bloomberg site claims that it still had $16.5 billion in customer deposits linked to the crypto world.
In addition to the collapse of Silicon Valley Bank, days ago the digital asset bank closed Silvergatewhich pushed the price of Bitcoin (BTC) from the $23,700 to $19,900 in less than 48 hours.
After that, Signature appeared as a viable alternative for those interested in cryptocurrencies.
After confirming the protection of depositors, regulatory authorities announced that Signature’s shareholders and unsecured debtors will not be protected, and the management has been removed, the officials said.
Source: Ambito
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