After SVB, Signature Bank latest casualty of turmoil in banking sector

Signature Bank was shut down by New York state financial regulators on Sunday as the aftermath of last week’s implosion of SVB Financial Group’s Silicon Valley bank spilled over into other lenders.

Depositors at the New York-based bank have access to their money under “a similar systemic risk exemption” that allows Silicon Valley Bank customers to receive their money Monday, the Treasury Department, the Federal Reserve and the Federal Insurance Deposit Corp. in a joint statement on Sunday.

“All depositors of this institution will be sanitized,” regulators said. “As with the dissolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”

Signature Bank, a New York state-licensed commercial bank that is FDIC-insured, had total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of Dec. 31, the New said York Treasury Department in a separate statement.

The New York Banking Commissioner appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for subsequent disposition of the bank’s assets.

Signature Bank reported deposits totaling $89.17 billion as of March 8. As of December 31, it had approximately $110.36 billion in assets, according to the New York State Department of Financial Services.

The turmoil following the collapse of Silicon Valley Bank continued to unfold Monday, with shares of First Republic Bank falling a record 73 percent as of 9 p.m. IST.

Trading halted after the declines, which accelerated despite a statement by the bank that it had more than $70 billion in untapped liquidity to fund operations from deals that included the Federal Reserve and JPMorgan Chase. – Agencies

Oil prices fell $4 along with stocks on Monday as the collapse of the Silicon Valley bank raised fears of a new financial crisis, but a rebound in Chinese demand provided support.

Brent crude futures were down $3.96, or 4.8 percent, at $78.82 a barrel by 1220 GMT. West Texas Intermediate U.S. crude oil futures (WTI) fell $3.86, or 5 percent, to $72.82 a barrel.

Brent hit its lowest level since early January, while WTI touched prices not seen since early December.

Fears of contagion from the collapse of Silicon Valley Bank led to a sell-off in US assets late last week, while state regulators shut down New York-based Signature Bank on Sunday.

In recent days, a weaker dollar, making oil cheaper for holders of other currencies, has provided some support to prices. – Bloomberg