What happened to Signature Bank? The latest bank failure marks third largest in history
Signature Bank, a New York-based regional bank that became a leader in cryptocurrency lending, shuttered suddenly on Sunday, marking the third-biggest bank failure in U.S. history just two days after the country’s second biggest failure, Silicon Valley Bank, rocked the stock market and reignited fears of “challenging and turbulent” economic times.
Key Facts:
- State regulators in New York shuttered Signature Bank—a 23-year-old regional bank that had previously focused on digital assets by becoming one of a few banks to accept crypto deposits—after regulators warned the stability of the financial system could be threatened if the bank remained open.
- Signature Bank became the third regional bank to collapse in a matter of weeks, following the high-profile collapse of California-based crypto-friendly banks Silvergate Bank and Silicon Valley Bank, whose failure spooked investors wary of widespread financial vulnerability.
- New York’s Department of Financial Services announced Sunday it had taken possession of the bank, which had more than $110 billion in assets and more than $88 billion in deposits as of the end of last year.
