Former President Trump has to be happy now that he was refused business by Signature Bank in the wake of the Capitol riot now that the New York-based lender has cemented itself as just the most recent institution to be close down by official federal regulators.
It was announced that New York state regulators had officially shut down the bank as of this past Sunday, just a scant few days in the wake of the collapse of the California-based Silicon Valley Bank. The activity has sparked a new bought of fear about the possibility that jittery depositors could end up fully withdrawing their savings from various lenders all over the nation, possibly resulting in a destabilized banking system. However, back in 2021, Signature Bank made headlines for rejecting the business of one particular billionaire businessman.
“We witnessed the President of the United States encouraging the rioters and refraining from calling in the National Guard to protect the Congress in its performance of duty,” explained Signature Bank in a release at that time. “At this point in time, to ensure the peaceful transition of power, we believe the appropriate action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people.”
A report from CNBC stated that Signature Bank was heavily invested in a number of highly volatile things like cryptocurrency and also sported $110.4 billion in total assets and $88.6 billion in total deposits as of the end of 2022. In the wake of the move by state regulators from this past weekend, the Federal Deposit Insurance Corporation officially took manual control of the bank.
The closing down of Silicon Valley Bank, which held the title of 16th largest lender in the nation, was the largest bank to collapse since back in 2008 with the collapse of Washington Mutual. Federal officials issued a statement this past Sunday where they insisted that all Silicon Valley and Signature Bank’s depositors will be made whole.
“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” explained federal officials from a number of agencies, which included the Treasury Department itself, as part of a group statement. “All depositors of this institution will be made whole,” noting “as with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”
It was not at all clear just how these depositors would be getting their funds back. The FDIC insures all deposits up to the level of $250,000, but Silicon Valley bank is thought to have been in possession of insanely massive cash reserves for tech companies, venture capitalists, and wineries. To make issues worse, Treasury Secretary Janet Yellen explained via a news show on Sunday morning that there would not be any attempt at any bailouts for Silicon Valley Bank.