On Sunday, New York regulators shut down Signature Bank, a major lender in the cryptocurrency arena. This marks the third-largest bank failure in the history of the United States, surpassed only by the shutdown of Silicon Valley Bank just two days earlier and the previous downfall of Washington Mutual. By Friday, the bank’s total assets had reached a staggering $4.4 billion.
The bank, with a presence in states such as New York, Connecticut, California, Nevada, and North Carolina, was addressed in a statement jointly released by the authorities.
Signature Bank, akin to Silvergate, served as a crucial financial supporter to the digital currency domain. Nearly one-fourth of its deposits originated from the crypto market. The bank faced substantial deposit withdrawals following significant financial disruptions. Prior to its closure on Sunday, the bank’s shares had decreased by 76% from the previous year and had plummeted 20% on Friday.
Monday’s stock market opened with significant declines in U.S. banking shares, primarily driven by a dramatic 70% drop in First Republic Bank’s shares. The financial sector as a whole saw a decline exceeding 3%.
