Latest casualty of banking sector turmoil: Signature Bank

Signature Bank was closed by New York state financial regulators as the fallout from recent implosion of SVB Financial Group’s Silicon Valley Bank spreads to other lenders.

Depositors at the New York-based bank will have access to their money under “a similar systemic risk exception” to one that will allow Silicon Valley Bank clients to get their money, the Treasury Department, the Federal Reserve and the Federal Insurance Deposit Corp. said in a joint statement.

“All depositors of this institution will be made whole,” the regulators said. “As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”

Signature Bank, a New York state-chartered commercial bank that’s FDIC-insured, had total assets of about $110.36 billion and total deposits of roughly $88.59 billion as of Dec. 31, the New York Department of Financial Services said in a separate statement.

New York banking regulators appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of the bank’s assets.

Signature Bank reported deposit balances totaling $89.17 billion as of March 8. As of 31 December, it had approximately $110.36 billion in assets, according to New York state’s Department of Financial Services.