Washington, D.C. — In a dramatic move to stabilize the US banking sector, the Federal Deposit Insurance Corporation (FDIC) has taken control of Signature Bank, New York, NY.
The FDIC moved swiftly after the New York State Department of Financial Services closed the bank, appointing the FDIC as receiver. The agency transferred all deposits and most assets to Signature Bridge Bank, N.A., a new institution designed to protect depositors and manage the assets of Signature Bank.
With 40 branches nationwide, the sudden closure of Signature Bank raised concerns among investors and depositors. However, the FDIC assured that customers would continue to have access to their funds, with online banking services resuming as usual on March 13th.
The transfer was completed under a systemic risk exception approved by the FDIC, ensuring that all depositors will be made whole without any losses for taxpayers. Shareholders and certain unsecured debt holders will not be protected, while senior management has been removed.
The FDIC also transferred all Qualified Financial Contracts of Signature Bank to the bridge bank, aiming to preserve asset value and improve recoveries for creditors and the Deposit Insurance Fund (DIF). As receiver, the FDIC will operate Signature Bridge Bank, N.A. to maximize its value for future sale while maintaining banking services in the communities served by Signature Bank.
Greg D. Carmichael, former president and CEO of Fifth Third Bancorp, has been named CEO of Signature Bridge Bank, N.A., bringing his extensive experience to bear on stabilizing and managing the new institution.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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