After SVB, Signature Bank also went bankrupt

In the statement issued by the New York Department of Financial Services (DFS), it was announced that the US Federal Deposit Insurance Corporation (FDIC) has appointed a trustee for Signature Bank to protect its depositors.

Signature Bank has approximately $110.4 billion in assets and approximately $88.6 billion in deposits as of December 31, 2022, and the bank is FDIC insured.

In the statement, it was emphasized that DFS is in close cooperation with other institutions in monitoring market trends to protect consumers, protect the healthy functioning of the institutions it regulates, and maintain the stability of the global financial system.

SVB was the first FDIC-insured institution to fail this year.

The share price fell more than 60 percent after California-based SVB closed its $21 billion bond position at a loss of about $1.8 billion and announced it would raise more than $2 billion in capital.

Its operations were suspended because the bank kept losing after some venture capital investors advised companies to withdraw their money from the bank.

While the FDIC announced on March 10 that a trustee for SVB was appointed, sending markets tumbling, it was noted that SVB was the first FDIC-insured institution to fail this year.

The SVB bankruptcy was one of the largest bankruptcies recorded in the US since the 2008 global financial crisis. Washington Mutual experienced the largest bankruptcy of its kind during the 2008 crisis. (AA)