In the statement made by the New York Financial Services department (DFS), it was announced that after Silicon Valley Bank (SVB), Signature Bank was appointed by the US Federal Deposit Insurance Corporation (FDIC) to protect 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 by monitoring market trends in order to protect consumers, to maintain the stability of the global financial system with the healthy functioning of the institutions it regulates.
FIRST FDIC INSURED AUTHORITY
Share price dropped more than 60 percent after California-based SVB closed its $21 billion bond position with a loss of approximately $1.8 billion and announced that it would raise more than $2 billion in capital.
Its operations were suspended as the bank continued to lose after some venture capital investors advised companies to withdraw their money from the bank.
While the FDIC announced on March 10 that a trustee was appointed to SVB, which caused a decline in the markets, it was noted that SVB was the first FDIC insured institution to go bankrupt this year.
The bankruptcy of the SVB was one of the largest recorded bankruptcies in the US since the 2008 global financial crisis. The largest such bankruptcy was experienced by Washington Mutual during the 2008 crisis.
THE MOST IMPORTANT NAME WRITTEN THE LAW OF THE SAVING
Signature Bank’s board of directors is retired congressman Barney Frank, who wrote the Dodd-Frank Act to tighten bank regulations after the 2008 financial crisis. The bankruptcy of the bank, of which Barney Frank, one of the most important names who wrote the redeeming law, is a member of the board of directors, is interpreted as summarizing the recent economic crisis and discussions in the USA.
“DODD- FRANK WALL STREET REFORM”
The Obama administration implemented the “Dodd-Frank Wall Street Reform” law in 2010, which brought new regulations to Wall Street so that the 2008 financial crisis, which brought the world economy to the brink of collapse, would not recur.
Within the framework of the reforms, capital market derivatives, complex market transactions and bonuses of company executives began to be subject to government control. Organizations such as the International Monetary Fund and the World Bank predicted that the American financial system had become more stable and resilient than in the past thanks to the Dodd-Frank Reform.
10 banks at risk of bankruptcy
£2bn funding from HSBC to SVB
What does SVB’s bankruptcy mean for investors?
The banking crisis in the USA is growing! After SVB The bank went bankrupt
Silicon Valley Bank went bankrupt