New York Community Bancorp has taken over Signature Bank and assumed most of its deposits, the Federal Deposit Insurance Corporation announced Sunday evening, one week after crypto-friendly Signature Bank and tech-focused Silicon Valley Bank both collapsed in the span of a few days—sending shockwaves through the U.S. financial system.
This too, I’d add:
The collapse of New York-based Signature Bank—which had $110 billion in assets last year—marked the third-largest bank failure in U.S. history, after Washington Mutual’s failure in 2008 and Silicon Valley Bank’s failure just two days before Signature was shut down.
And it seems the underlying culprit is the flawed strategy summarized here:
A regional bank, Signature became known for its unusual willingness to work with cryptocurrency industry customers, and although it began pivoting away from crypto last year, a recent plunge in crypto prices harmed the bank, especially after crypto-friendly Silvergate Bank failed earlier this month.
Opening paragraph is alarming, I feel:
This too, I’d add:
And it seems the underlying culprit is the flawed strategy summarized here:
are there more of these ‘crypto-friendly’ banks at risk?