Explained: Was Signature Bank a victim of panic after the collapse of Silicon Valley Bank?
FirstpostSignature Bank’s collapse came stunningly fast, leaving behind the question of whether there was a fundamental flaw in the way it did business — or if it was just a victim of the panic that spread after the failure of Silicon Valley Bank. By the same measure, it was also the third largest US bank to fail, after Washington Mutual’s collapse in 2008 and Silicon Valley Bank’s demise last week. Konstantin Shulga, co-founder and CEO of Cyprus-based Finery Markets, which connects cryptocurrency businesses with banks and other businesses, said that many of his firm’s clients banked with Signature or Silvergate Capital, which last week voluntarily shut down its bank, warning it could end up “less than well capitalised.” A person reads a notice posted on the front doors of a Silicon Valley Bank branch that reads “FDIC Acts to Protect All Depositors of the former Silicon Valley Bank, “Santa Clara, California,” in Pasadena, California. Twice in March, Signature took the uncommon step of issuing financial updates as depositors fled Silicon Valley Bank, which was taken over by regulators two days before Signature was. “We intentionally maintain a high level of capital, strong liquidity profile and solid earnings,” Eric Howell, then Signature Bank’s president and chief operating officer, said in a statement 9 March, three days before the bank in its old form ceased to exist, “which continues to differentiate us from competitors, especially during challenging times.” Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here.