After SVB, Signature Bank also went bankrupt

The New York Department of Financial Services (DFS) announced that the US Federal Deposit Insurance Corporation (FDIC) has appointed a trustee to Signature Bank to protect depositors.

Signature Bank has approximately $110.4 billion in assets and approximately $88.6 billion in deposits as of December 31, 2022. The bank is reportedly 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 protect the healthy functioning of the institutions it regulates and to maintain the stability of the global financial system.

SVB WAS THE FIRST FDIC INSURED ENTERPRISE TO BE BANKRUPT THIS YEAR

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. After some investors recommended that they withdraw their money from the bank, its operations were suspended as the bank continued to lose.

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.