America closes Signature Bank ‎

Regulators in the US state of New York on Sunday shut down Signature Bank, which is one of the most favored destinations for cryptocurrency firms in the US.

The Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation said in a joint statement: “All depositors of this institution will be fully compensated.”

This is the third major bank to collapse within a week, which sent a state of panic among investors.

It seems that the joint declaration on the protection of depositors whose deposits exceed 250 thousand dollars, which is guaranteed by the Federal Insurance Corporation, aims to reassure bank customers that their funds will not be frozen.

(Signature Bank) had about $88.59 billion in deposits as of December 31, 2022. The New York Department of Financial Services acquired the bank.

The Treasury Department and other banking sector regulators said in a joint statement on Sunday that depositors at Signature Bank would be compensated and that “taxpayers will not bear any losses.”

The American regulators had closed the Silicon Valley Bank after its collapse and its failure to compensate for financial losses, in addition to its inability to meet the sudden withdrawals of funds made by its customers, which led to its official bankruptcy announcement on Friday morning; To come under the control of the Federal Deposit Insurance Corporation in the United States.

In turn, a senior US Treasury official said that the new policies approved by regulators regarding the closure of Silicon Valley and Signature banks on Sunday were taken to stabilize the financial system and protect depositors and do not constitute a financial rescue plan for either of them.

The official added that US taxpayers would not bear any losses for either bank

The official stated that the steps would “restore market confidence” along with the Federal Reserve’s (US Central Bank) decision to make money available to qualified financial institutions and ensure that they can meet the needs of all depositors.