On Sunday, March 12, 2023, the New York State Department of Financial Services (DFS) took possession of NY-based Signature Bank in order to protect depositors. All depositors will be able to access and withdraw their funds.
Signature Bank was a leading bank for the crypto industry along with law firms in New York City and the taxi industry. Shares in the company were trading at $70 per share Friday before being halted. The stock is essentially worthless since the government takeover.
Signature Bank had total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022.
DFS has appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, and the FDIC has transferred all of the deposits and substantially all of the assets of Signature Bank to Signature Bridge Bank, N.A., a full-service bank that will be operated by the FDIC as it markets the institution to potential bidders.
NY Governor Kathy Hochul said: “Our view was to make sure that the entire banking community here in New York was stable, that we can project calm, that this is a time when we could manage a certain narrow situation and to make sure that that did not get any worse and that was what our objectives were.”
Signature Bank customers with questions about this process should contact Signature Bridge Bank, N.A. at (866) 744-5463.