Regulators close Signature bank, announce plan to make depositors whole

Anil Panchal FXStreet

“New York state's Department of Financial Services said on Sunday it has taken possession of New York-based Signature Bank and appointed the U.S. Federal Deposit Insurance Corp as receiver, the second bank failure in a matter of days,” reported Reuters.

“Signature Bank had deposits totaling approximately $88.59 billion as of December 31,” adds the news.

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

Also read: US Treasury Department, Fed unveil action plan on Silicon Valley Bank fallout

It should be noted that a Senior US Treasury Official mentioned that they will work with Congress and financial regulators to consider additional actions to further strengthen financial system.

Risk appetite improves

The news allows traders to begin the week on a positive footing after a downbeat close on Friday. The same propels S&P 500 Futures after a negative close the previous day.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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