New York regulators close Signature Bank

New York banking regulators closed Signature Bank on 12 March 2023 and appointed the Federal Deposit Insurance Corporation as receiver. The action followed heavy deposit outflows and occurred two days after Silicon Valley Bank failed, intensifying concern about contagion in the United States banking system.

Signature served commercial real-estate, private banking and digital-asset clients. Regulators later described weaknesses in management and preparedness for a rapid run. The bank's association with cryptocurrency firms was relevant to its deposit mix, but it does not by itself prove that cryptocurrency losses directly caused the closure.

Federal authorities used a systemic-risk exception so depositors could access all funds, including balances above the normal insurance cap. Equity and debt investors were not given the same protection. The policy sought to contain systemic pressure rather than declare every bank liability federally guaranteed.

Critics, former executives and regulators disagreed about whether closure was necessary and how much information the board provided. Those disputes should be reported with attribution. The legal event remains clear: the state chartering authority took possession and transferred receivership to the FDIC.

This News item keeps Signature's failure distinct from SVB's, even though the weekend response linked them. A later sale of deposits and branches, investigations and revised bank rules are follow-up steps. The event recorded here is the loss of independent control after authorities judged the institution could not safely continue.