United States Federal Deposit Insurance Corporation (FDIC) chair, Martin Gruenberg, said his agency would return around $4 billion USD in Signarture Bank deposits.
The organisation aims to complete the transfers in early April. The exec specified the return would take place “by early next week.”
Gruenberg said in a speech at a US House Financial Services Committee on Wednesday that the FDIC would return deposits not included in the New York Community Bancorp daughter firm of Signature’s operation. Reports revealed that signature’s payment processing platform, Signet, was also excluded from the NYCB bid.
Initial reports showed that the FDIC could shutter its non-NYCB, crypto-linked accounts by 5 April if depositors failed to transfer their funds.
The news comes after New York regulators closed the bank after Silicon Valley Bank and Signature Bank collapsed in mid-March, citing economic risks.
At a 28 March hearing, Gruenberg stated that Silvergate Bank had failed to manage risks that triggered the bank’s failure.
He said at the time: “It is worth noting that these two institutions were allowed to fail. Shareholders lost their investment. Unsecured creditors took losses. The boards and the most senior executives were removed.
He added that the FDIC had the authority to “investigate and hold accountable the directors, officers and professional service providers[…] for the losses they caused to the banks and for their misconduct in the management of the banks.”
