Another bank goes bankrupt in the US

Following Silicon Valley Bank (SVB), it was reported that a receiver was also appointed to New York-based Signature Bank. In a statement made by the New York Department of Financial Services (DFS), it was announced that the US Federal Deposit Insurance Corporation (FDIC) had appointed a receiver to Signature Bank in order to protect depositors. It was noted in the statement that Signature Bank had approximately $110.4 billion in assets and approximately $88.6 billion in deposits as of December 31, 2022, and that the bank was FDIC insured. The statement emphasized that DFS monitors market trends and works closely with other institutions in order to protect consumers and maintain the stability of the global financial system through the healthy operation of the institutions it regulates. SVB was the first FDIC-insured institution to go bankrupt this year. After California-based SVB closed its $21 billion bond position with a loss of approximately $1.8 billion and announced that it would increase capital by over $2 billion, its share price lost more than 60%. The bank's operations were suspended as losses continued after some venture capital investors advised companies to withdraw their money from the bank. The FDIC announced on March 10 that it had placed SVB under receivership, which had caused a market crash, and noted that SVB was the first FDIC-insured institution to fail this year. SVB's failure was one of the largest bank failures on record in the U.S. since the 2008 global financial crisis. The largest such failure was experienced by Washington Mutual during the 2008 crisis.