State authorities have targeted Signature Bank, closing down the cryptocurrency-friendly bank on Sunday.
In a joint statement between the United States Federal Reserve, Treasury, and Federal Deposit Insurance Corporation (FDIC), the three institutions closed Signature Bank to protect the national economy and boost banking system sentiment.
It said in its statement: “All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”
It added it would not protect “shareholders and uncertain unsecured debtholders” and that senior management had “also been removed.”
The statement continued: “Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.”
According to reports, Signature Bank held $88.6 billion in deposits.
The news comes amid the collapse of Silicon Valley Bank on Saturday after it failed to secure additional capital to resolve a liquidity crisis. Further troubles took place on Thursday last week after Silvergate Bank shut down and liquidated due to ongoing “industry and regulatory developments.”
