Signature Bank Also Goes Down After Svb

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Signature Bank Also Goes Down After Svb

Signature Bank Also Goes Down After SVB

It appears that the trouble for the global banking sector has only begun as the Signature Bank of USA was also closed by the state regulators.

According to analysts, a crash of this size makes it the 3rd largest bank failure in the banking history of the USA. On top of that, a development like this coming only after mere days of the SVB crash makes it even more challenging.

The collapse of the Silicon Valley Bank just a few days ago has resulted in billions of dollars being stranded. But once HSBC takes it over, the trouble might be over for the SVB customers. But in the case of Signature Bank, some more time will be needed!

No Taxpayer Losses, According to FDIC

The Federal Deposit Insurance Corporation of the USA has taken over the Signature Bank. As per the details, the US bank had assets of $110.36 billion and around $88 billion worth of deposits by the end of 2022.

According to the US bank regulators, no customer will lose their money. In fact, they emphasized the fact that every customer of the SVN and the Signature Bank will get their money back.

The analysts believe that the fall of Signature Bank and the Silicon Valley Bank has raised concerns and shattered the public's trust in the banking system. Although the situation is not as grave as the 2008 financial crisis, it could become big if we get more bank failures in the next few days/weeks.

The recent developments have removed $100 billion from the US banking sector and thus have also attracted the government's attention. However, the exact extent of the damage it has done to the customer's confidence remains to be seen.

The FDIC from the USA has nominated a successor bank through which customers will be able to access their funds. As per the details, the borrowers and the depositors of the Signature Bank will become the customers of another bank known as Bridge.

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