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Investor anger as a third U.S. bank collapses

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signature bank

State regulators closed New York-based Signature Bank, just two days after California authorities shuttered Silicon Valley Bank, in a collapse that roiled global markets and stranded billions of dollars of deposits.

The U.S. Treasury Department and other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole, and “no losses will be borne by the taxpayer.” The Signature failure is the third-largest in U.S. banking history.

New York banking regulators appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of the bank’s assets. Signature Bank reported deposit balances totaling $89.17 billion as of March 8. As of Dec. 31, it had approximately $110.36 billion in assets, according to New York state’s Department of Financial Services.

Representatives for Signature Bank did not immediately respond to a request for comment.

The FDIC on Sunday established a “bridge” successor bank to Signature, which will enable customers to access their funds on Monday. Signature Bank’s depositors and borrowers will automatically become customers of the bridge bank, the FDIC said.

The regulator named former Fifth Third Bancorp Chief Executive Greg Carmichael as CEO of the bridge bank.

Signature’s failure followed Silicon Valley Bank’s Friday shutdown, the largest failure since Washington Mutual went bust in 2008 during the financial crisis. Washington Mutual still ranks as the largest bank failure in U.S. history.

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U.S. officials on Sunday said Silicon Valley Bank customers will have access to their deposits starting on Monday. The federal government also announced actions to shore up deposits and stem any broader financial fallout from the collapse of the tech startup-focused lender.

Signature Bank, a commercial bank with private client offices in New York, Connecticut, California, Nevada and North Carolina, had nine national business lines including commercial real estate and digital asset banking.

As of September, almost a quarter of Signature’s deposits came from the cryptocurrency sector, but the bank announced in December that it would shrink its crypto-related deposits by $8 billion.

Signature Bank announced in February that its chief executive officer, Joseph DePaolo, would transition into a senior adviser role in 2023 and would be succeeded by the bank’s chief operating officer, Eric Howell. DePaolo has served as president and CEO since Signature’s inception in 2001.

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Falling in love with stocks with Nick Quinn

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On this week’s episode of Talk Ya Book, Chris Judd is joined by Spatium Capital’s Nick Quinn to discuss the why investors fall in love with stocks, when to sell and why three of his choices are performing strongly.

Proudly presented by Honan.

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Bank battering sees mess start to clean up

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What will the future of the banking sector look like?

 
The once-mighty banking sector has taken a battering over the past month.

From two U.S. banks closing down, to one in Switzerland merging with its biggest rival, the sector has sent shockwaves throughout financial markets around the world.

And another European Bank could be following suit.

But, what will the future of the industry start to look like, once the mess has been cleaned up?

Founder and CEO of Umee, Brent Xu, joined us to discuss.

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Disney to axe 7,000 jobs

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The Mouse House will deliver two rounds of layoffs

Disney has announced it will begin to axe 7,000 jobs, as it seeks to control costs and create a more “streamlined” business.

Several major divisions of the company, including Disney Entertainment, Disney Parks, Experiences and Products, and corporate, will be impacted.

Disney will begin notifying the first group of employees who are impacted by the workforce reductions over the next few days.

A second, larger round of job cuts will happen in April, with several thousand more staff reductions.

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