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Signature Bank — which cut ties with then-President Donald Trump in the wake of the Jan. 6, 2021, Capitol incursion — was shut down by federal regulators Sunday evening.
The move was announced in a joint statement by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp.
The shutdown of Signature — which had 40 branches, assets of $110.4 billion and deposits of $88.6 billion at the end of last year — represents the third-largest bank failure in U.S. history, according to CNBC.
The bank was reeling from its investments in Silicon Valley Bank — which had been seized by federal regulators two days before — and its deep exposure in cryptocurrencies, which have been crashing for months, according to The Wall Street Journal.
Sunday’s seizure made it the second major banking institution to fail in recent days after federal regulators moved to take control of SVB on Friday.
Signature was racing to line up a buyer to shore up its finances but was unable to find a deal before Monday, prompting federal regulators to move in to prevent a sudden collapse.
As with SVB, regulators said the U.S. government will ensure that all depositors get their money, even those whose accounts are in excess of the $250,000 FDIC insurance limits.
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