Rescue Measures
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New York’s Signature Bank Closed to Prevent Spread of Crisis
It is reported that the New York State financial regulator closed Signature Bank on Sunday to prevent the crisis caused by the collapse of Silicon Valley banks from spreading to other banks. The United States Treasury Department, the Federal Reserve and the Federal Insurance Depository Corporation issued a joint statement on Sunday that the depositors of this New York-based bank will be able to withdraw all funds, which is the same as the situation that allows depositors of Silicon Valley banks to withdraw deposits on Monday, and is an exception to similar systemic risks. The regulator closed the Signature Bank focusing on cryptocurrency business to avoid the spread of the crisis Analysis based on this information:The closure of Signature Bank in New York on Sunday by the state’s financial regulator has raised concerns about the possible spread of the crisis caused by the recent collapse of Silicon Valley banks. The move was taken as a precautionary measure to prevent contagion…
