NEW YORK: The US State regulators closed New York-based Signature Bank on Sunday, March 12, making it the third largest failure in the united state banking history. Two days after authorities closed Silicon Valley Bank, New York's Signature Bank shut down in third  largest failure in US banking history.

The New York state's Department of Financial Services said it has taken possession of New York-based Signature Bank and nominated the United State  Federal Deposit Insurance Corp as receiver, the second bank failure in a matter of days.

Signature Bank had deposits totaling approximately usd 88.59 billion as of December 31, the department said in a statement. However, Signature Bank did'nt immediately respond to a request for comment.

The US Treasury Department along with other bank regulators said in a joint statement on March 12 that all depositors of Signature Bank will be made whole, and that "no losses will be borne by the taxpayer."

Investors were uneasy about how quickly startup-focused Customer withdrawals caused SVB, the 16th largest lender in the United States, to fail. As the incident last week destroyed more than USD 100 billion in market value for US banks, government officials moved quickly over the weekend to try and regain public trust in the banking system.

The FDIC SET UP a "bridge" successor bank on Sund which will enable clients to access their funds on Monday. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the Federal Deposit Insurance Corporation said.

Greg Carmichael, a former CEO of Fifth Third Bancorp, was appointed by the regulator to lead the bridge bank.
Customers of Silicon Valley Bank will be able to access their deposits as of March 13, U.S. regulators announced.. Meanwhile, the federal government undertook initiatives to support deposits and try to contain any broader fallout.
With private client offices in New York, Connecticut, California, Nevada, and North Carolina, Signature was a commercial bank with nine national business lines, including commercial real estate and digital asset banking.
About 25% of its deposits as of September come from the cryptocurrency industry, but the bank said in December that it would reduce such deposits by USD 8 billion.

Joseph DePaolo, the chief executive officer of Signature Bank, made the announcement in February that he will become a senior adviser and be succeeded by Eric Howell, the bank's chief operational officer, in 2023. DePaolo has been Signature's president and CEO since the company's founding in 2001.

Former President Donald Trump and his family had a long-standing association with the bank, which gave Trump and his company checking accounts and provided funding for a number of the family's businesses. During the fatal Capitol Hill riots on January 6, 2021, Signature Bank severed its relationship with Trump and called for his resignation.

Governor Kathy Hochul of New York expressed her hope in a statement that the American government's measures on Sunday will lead to "greater confidence in the safety of our banking sector." Small businesses, notably those driving the innovation sector, make up a large portion of the depositors at these banks, and their success is essential to New York's thriving economy, she said.

According to FDIC officials, any losses to the Deposit Insurance Fund that were utilised to protect uninsured depositors will be made up by a special assessment on banks, as required by law.

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