Crypto-friendly Signature Bank shut down by regulators after collapses of SVB, Silvergate
This is the biggest bank failure since the 2008 financial crisis.
After the closing of Signature Bank SBNY in New York on Sunday by state authorities, Silicon Valley Bank on Friday was also closed by regulators. This is the largest bank failure since 2008's financial crisis.
According to a joint statement from the Department of the Treasury and the Federal Reserve, Signature Bank will make all depositors whole.
Signature Bank is a popular choice for crypto companies, particularly after crypto-friendly Silvergate Bank Si, -11.27%, announced last Wednesday that it would cease operations.
Signature Bank offers deposit services for digital assets of its clients, but it does not invest in, trade or hold on its own balance sheets nor custody thereof. It also does not lend against such assets or make loans that are collateralized by them.
Sunday's announcement by the Federal Reserve included a new program for emergency loans to increase the bank system's capacity.
The U.S. equity markets were trading higher on Sunday afternoon. Dow futures YM00, +0.90%, rose 0.5% and S&P 500 futures ES00, +1.31%, rose 0.8%. According to FactSet data, futures for the Nasdaq 100, NQ00, +1.32%, rose 0.9%.
According to CoinDesk data, Bitcoin USD, +2.93% jumped 6.4% to $21,842 in the last 24 hours, while ether ETHUSD gained 7% to $1.576, and +1.82% to ETHUSD, respectively.