• Contact Us
  • Login
Subscribe
LittleAfrica News
  • Home
  • About Us
    • Mona Davids, Founder and Publisher
    • Mymoena Kalinisan-Davids, Director of Communications and Editor-in-Chief
  • Newspaper Editions
  • Education
  • Metro
  • Africa
  • Caribbean
  • U.S.
No Result
View All Result
  • Home
  • About Us
    • Mona Davids, Founder and Publisher
    • Mymoena Kalinisan-Davids, Director of Communications and Editor-in-Chief
  • Newspaper Editions
  • Education
  • Metro
  • Africa
  • Caribbean
  • U.S.
No Result
View All Result
LittleAfrica News
No Result
View All Result
Home Metro

Troubling Trend Emerging as Signature Bank Collapses, Third Largest Bank Failure in U.S.

Mymoena Davids by Mymoena Davids
March 14, 2023
in Metro
Troubling Trend Emerging as Signature Bank Collapses, Third Largest Bank Failure in U.S.
63
SHARES
619
VIEWS
Share on FacebookShare on Twitter

In the aftermath of the Silicon Valley Bank’s (SVB) collapse, Signature Bank suffered a similar fate, becoming the third-largest bank failure in the history of the United States. 

 

On Friday, March 10th, reacting to panic induced by SVB’s collapse, Signature Bank’s clientele withdrew their funds from the financial institution. According to a board member, more than $10 billion was withdrawn on Friday. “We had no indication of problems until we got a deposit run late Friday, which was purely contagion from SVB,” said Barney Frank, a Signature Bank board member. Signature Bank’s executives were shocked by their clientele’s reaction and attempted to resolve the situation throughout the weekend. Withdrawals slowed down on Sunday, March 12th, however, the damage was done. On the same day, the Federal Deposit Insurance Corporation (FDIC) took over the bank, removing its leadership and installing a new chief executive. The FDIC informed clients with more than $250,000 with the bank their funds would be available on Monday, March 13. 

“All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” said a joint statement from the regulators handling the matter of the bank.

Signature Bank, founded in 2001, is a New York-based financial institution. It was a well-regarded bank in the cryptocurrency industry, providing services since 2018 that catered to crypto companies and individuals in the businesses. Signature Bank created a sense of legitimacy in the crypto industry, providing a 24-hour payment network for its clients, and according to CNBC, the bank held $16.5 billion in digital asset-related deposits. 

While the bank played a significant role in the cryptocurrency ecosystem, it also served firms in the legal and real estate industries. At the end of 2022, Signature had 40 branches, $110 billion in assets, and $88 billion in deposits.

Financial industry experts have given a negative forecast for banking involving cryptocurrency and technology. The two fields have not been doing exceptionally well recently, with popular cryptocurrencies such as Bitcoin losing value and tech companies reducing their staff sizes.

“It’s very dark days at present for crypto,” said Yesha Yadav, a digital finance expert. 

“Crypto firms have to figure out what to do next,” Yadav said. “It does not look like many banks are going to be excited to offer crypto firms banking business going forward.”

Related

Tags: BankFinanceFinancial InstitutionFundsLittleAfrica NewsNew York CitySignature BankUnited States
Previous Post

Mayor Eric Adams To Open Two Extra Shelters For Asylum-Seeking Migrants

Next Post

Student Shot in Shooting Outside High School Campus on the Upper West Side

Mymoena Davids

Mymoena Davids

Related Posts

Mayor Adams Suspends Right-To-Shelter Ahead of Title 42 Expiration
Metro

Mayor Adams Finally Admits New York’s Right-To-Shelter Doesn’t Apply to Migrants

by LittleAfrica Staff Writer
September 29, 2023
3.3k
Exclusive Interview with NYC Schools Chancellor David Banks
Metro

Exclusive Interview with NYC Schools Chancellor David Banks

by Mona Davids
September 28, 2023
854
Successful Inaugural USA-Caribbean Investment Forum
Metro

Successful Inaugural USA-Caribbean Investment Forum

by LittleAfrica Staff Writer
September 28, 2023
1.1k
NYC Judge Says Right-to-Shelter Does Not Apply to Migrants
Metro

NYC Judge Says Right-to-Shelter Does Not Apply to Migrants

by LittleAfrica News Staff Writer
September 28, 2023
1.2k
Barbados Prime Minister Mia Mottley Addresses UN General Assembly
Metro

Barbados Prime Minister Mia Mottley Addresses UN General Assembly

by LittleAfrica Staff Writer
September 28, 2023
655
Next Post
Student Shot in Shooting Outside High School Campus on the Upper West Side

Student Shot in Shooting Outside High School Campus on the Upper West Side

Translate

LittleAfrica News Newspaper : September 5  — September 11
Metro

LittleAfrica News Newspaper : September 5 — September 11

LittleAfrica News Newspaper : September 5 — September 11

September 4, 2023
LittleAfrica News Newspaper : September 12 — September 18
Metro

LittleAfrica News Newspaper : September 12 — September 18

LittleAfrica News Newspaper: September 12—18 Click here to watch the full interview with Mayor Eric Adams

September 11, 2023
LittleAfrica News Newspaper : September 26 — October 2
Metro

LittleAfrica News Newspaper : September 26 — October 2

LittleAfrica News Newspaper: September 26 — October 2

September 25, 2023

Local, National, and International News for the Diaspora

BOMESI - Black Owned Media Equity and Sustainability Institute

Recent Posts

  • Mayor Adams Finally Admits New York’s Right-To-Shelter Doesn’t Apply to Migrants
  • Exclusive Interview with NYC Schools Chancellor David Banks
  • Buzz Begins as Barbados Food and Rum Festival Returns in October
  • Successful Inaugural USA-Caribbean Investment Forum
  • NYC Judge Says Right-to-Shelter Does Not Apply to Migrants

Menu

  • Home
  • About Us
    • Mona Davids, Founder and Publisher
    • Mymoena Kalinisan-Davids, Director of Communications and Editor-in-Chief
  • Newspaper Editions
  • Education
  • Metro
  • Africa
  • Caribbean
  • U.S.

© 2023 LittleAfrica News. A Project of Social Impact Strategies. All Rights Reserved.

No Result
View All Result
  • Contact Us
  • Home
  • Letters to the Editor
  • LittleAfrica News Newspaper : March 1 – March 15
  • LittleAfrica News Newspaper Print Edition : February 16 – February 28
  • Mona Davids, Founder and Publisher
  • Mymoena Kalinisan-Davids, Director of Communications and Editor-in-Chief
  • Newspaper Digital Editions
  • Pricing
  • Privacy Policy
  • Terms of Use

© 2023 LittleAfrica News. A Project of Social Impact Strategies. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?