How New York Residents Are Impacted By New York Bank Failing
A "systemic risk" is why officials shut down a New York-based bank with locations in the Hudson Valley. What does it mean for New Yorkers?
A New York-based bank is now under federal control as officials hope to avoid a banking crisis.
New York Bank Fails, Under Federal Control
The Federal Deposit Insurance Corporation is now in control of Manhattan-based Signature Bank.
Signature Bank is a New York state-chartered commercial bank and is FDIC-insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022, according to New York Department of Financial Services.
Manhattan-based Signature Bank Has Locations In Hudson Valley
Officials shut the bank due to "systemic risk."
"We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole," the US Department of Treasury stated.
Signature Bank has locations in Westchester County, New York, including in New Rochelle and White Plains.
No Other New York Banks Impacted
Governor Kathy Hochul told residents that all depositors at the bank are protected and will be made whole.
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"I have been working closely with Federal partners on ways to stabilize the banking sector and protect the hard-earned money of New Yorkers whose livelihoods depend on impacted companies," Hochul stated. "I'm grateful that the Federal regulators have taken steps to do just that, and I hope that these actions will provide increased confidence in the stability of our banking system. Many depositors at these banks are small businesses, including those driving the innovation economy, and their success is key to New York's robust economy."
New York officials are assuring residents no other New York bank is currently in danger of being taken over by the FDIC.
’36-Hour’ Nor’easter Barrels Down On Hudson Valley, New York State
“Last night I received a bipartisan, bicameral briefing from federal regulators, and this morning, joined a call with Governor Kathy Hochul and the New York Congressional Delegation to discuss the collapse of Silicon Valley Bank and Signature Bank. My main focus is ensuring the issues facing these banks do not spread to Main Street," U.S. Rep. Marc Molinaro (NY-19) stated. “I’m in communication with the leadership at banks in New York’s 19th Congressional District. It’s critical we protect the deposits of local families, farmers, and small businesses.”