Signature Bank Failure

About Signature Bank Failure

Signature Bank of New York failed on March 12, 2023, two days after Silicon Valley Bank. Signature had 110 billion in assets, making it the third largest bank failure in US history. The bank had grown rapidly by serving cryptocurrency companies, which accounted for about 20 percent of deposits. When SVB failed, crypto and tech depositors panicked and withdrew from Signature. The FDIC seized the bank and guaranteed all deposits. Barney Frank, the former congressman and Signature board member, argued the closure was politically motivated to send an anti crypto signal. The FDIC denied this. Signature was sold to Flagstar Bank, a subsidiary of New York Community Bancorp.