Regulators seize Signature Bank; What that means to people with money in the bank
ROCHESTER, N.Y. – “Holding those accountable.” That’s starting to happen at Signature Bank after New York State’s Department of Financial Services took over the bank Sunday night.
News10NBC heard from State leaders, and one local financial expert who explains what this means to all of us with money in the bank.
Experts say bank failures like this are nothing new, and most of us will not be affected in any way. It’s still business as usual.
“This is an unusual circumstance but the main message I want to deliver is that New Yorkers should have the confidence that their money is secured,” said Governor Kathy Hochul.
Following the news of banking regulators shutting down Silicon Valley Bank in California on Friday, New York’s Signature Bank came under the radar of the State’s Department of Financial Services after its customers got nervous.
“Signature, because of the amount of outflows we saw on Friday, we knew we were going to have to take action over the weekend so that they can open on Monday,” said Department Superintendent Adrienne Harris.
She says she took over Signature Bank and appointed the Federal Deposit Insurance Corporation, more commonly known as the FDIC to take the actions needed.
“The management has been removed so part of my taking over the bank and appointing the FDIC as receiver means the management, the board is removed instantly, and now the day-to-day operations are run by the FDIC. They will install new management, and then we will look for a new owner of the bank,” said Harris.
So what does this mean for people with money in the bank. News10NBC took that question to George Conboy, Chairman of Brighton Securities in Brighton.
“Anyone who has bank accounts less than $250,000 have nothing to worry about no matter what bank they’re with. No matter what,” said Conboy.
He also said in this case people with more than $250,000 in the bank should not worry as well.
“Relax, your bank is back stopped by the FDIC regardless of how much you have in there. The White House, the FDIC, the Treasury have all come out together linking arms saying we’ve got your back on this, and they do,” said Conboy.
Signature bank released this statement on their website:
“On Sunday, March 12, 2023, Signature Bank, New York, NY was closed by the Department of Financial Services of New York. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
To protect depositors, the FDIC transferred all 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.”