Signature Bank, which had offices in Beverly Hills, El Segundo, Newport Beach and Ontario, was closed Sunday by the New York Department of Financial Services to protect depositors.
The department has appointed the Federal Deposit Insurance Corp. to run the day-to-day operations of the bank. All depositors will be made whole, according to the department.
In a joint statement issued Sunday by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell and FDIC Chairman Martin J. Gruenberg announcing Yellen’s approval of actions enabling the FDIC to complete its resolution of Santa Clara-based Silicon Valley Bank, also announced “a similar systemic risk exception for Signature Bank,” that fully protects all depositors.
All depositors will have access to all of their money starting Monday. No losses associated with the closures of Signature Bank and Silicon Valley Bank will be borne by taxpayers, the statement said.
Signature Bank billed itself as “a full-service commercial bank with private client offices throughout the New York Metropolitan area, Connecticut, North Carolina and California” focusing “on serving the financial needs of privately owned businesses, their owners and senior managers.”
Silicon Valley Bank, whose closure was announced Friday, had offices in Santa Monica, Irvine and San Diego.
President Joe Biden will deliver remarks on “maintaining a resilient banking system and protecting our historic economic recovery” Monday morning before flying to San Diego to meet with Australia Prime Minister Anthony Albanese and Prime Minister Rishi Sunak of the United Kingdom to discuss the Australia-United Kingdom-United States Partnership known as AUKUS, the White House said.