New York-based Signature Bank (SBNY.O) was closed by state regulators on Sunday, only two days after Silicon Valley Bank (SVB) collapsed. Signature Bank’s failure was the third largest in U.S. banking history; SVB was the second largest failure in U.S. history since the financial crisis of 2008 when Washington Mutual collapsed. As of September, nearly a quarter of Signature’s deposits came from cryptocurrency, however the bank announced in December it would reduce it’s crypto-related deposits by $8 billion. Senior management of both banks have been removed and officials said shareholders and certain unsecured debtholders of both banks would not be protected.
