JaipurPosted: March 14, 2023 at 02:01:41 am
crisis: control in the hands of the FDIC
Signature Bank has closed after Silicon Valley Bank of America
New York. Regulatory agencies in the US have now shut down Signature Bank following the bankruptcy of Silicon Valley Bank (SVB). This has been called the third largest failure in America’s banking history.
The Federal Deposit Insurance Corporation (FDIC) has taken control of Signature Bank, the New York Department of Financial Services said. The bank’s balance sheet at the end of last year had assets of $110 billion and deposits of $88.59 billion. The US Treasury Department and other regulatory agencies made it clear in a joint statement that the interests of all depositors of Signature Bank and Silicon Valley Bank will be protected. The taxpayer will not have to suffer. Billions of dollars of investors are stuck in Silicon Valley Bank, the world’s largest startup ecosystem funding bank. An agreement has been reached with HSBC Bank to sell the bank’s British business for one pound, i.e. 100 rupees. FDCI is considering various options, including an acquisition, to resolve the SVB Bank issue.