After SVB, Signature Bank is also Scope!


 "Many banks have closed, I guess who will be left?"

Previously Silvergate and now another cryptocurrency friendly bank based in New York namely Signature Bank has closed.

Reportedly, the Federal Reserve (Fed) of the United States (US) and the Federal Deposit Insurance Corporation (FDIC) made the decision to protect the US economy and strengthen the confidence of many individuals in the banking system.

Just like Silicon Valley Bank (SVB), the Fed stated that no losses will be borne by taxpayers.

However, shareholders and some unsecured debt holders will not be protected while senior management is removed.

The following steps will ensure that the US banking system continues to perform its important role of protecting deposits and providing access to credit for households and businesses in a way that encourages economic growth.

For context, Signature Bank had $88.6 billion in deposits as of December 31 and is widely believed to be the most crypto-friendly bank in the US.

In the meantime, Silvergate Bank last week announced it would voluntarily close its operations in accordance with recent industry and regulatory developments.

According to some analysts, Signature Bank was able to weather various challenges during the fall of FTx following their depositors much more than Silvergate Bank which has 5% deposits from crypto.