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Reminder: Collapsed Bank Closed Trump’s Accounts and Called For Resignation Amid J6 Fallout


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Amid the SVB collapse, regulators closed New York-based Signature Bank.

Second Failure: Signature Bank Has Collapsed!

Read the full press release:

Superintendent Adrienne A. Harris announced today that the New York Department of Financial Services (DFS) has taken possession of Signature Bank, pursuant to Section 606 of New York Banking Law, in order to protect depositors. DFS appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of the 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.

DFS is in close contact with all regulated entities in light of market events, monitoring market trends, and collaborating closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate, and preserve the stability of the global financial system.

The Treasury Department, Federal Reserve, and FDIC noted in their joint press release:

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

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. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.

Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

Several pundits noted that Signature Bank severed ties with President Trump and called for his resignation after J6 in a famous virtue-signaling act.

From Real Estate Weekly in January 2021:

For the first time in its 20-year history, prominent real estate lender Signature Bank has issued a comment on the nation’s politics with a call for President Donald Trump to resign.

“We have never before commented on any political matter and hope to never do so again,” said the New York-based bank led by Joseph J. DePaolo. “However, as Americans we are deeply, deeply saddened by the rioting and insurrection which took place in the most sacred of American institutions, our United States Capitol.”

As well as closing Trump’s personal accounts at the bank, Signature has also warned it “will not do business in the future with any members of Congress who voted to disregard the Electoral College.”

The statement followed multiple reports that one of Trump’s biggest lenders, Deutsche Bank, is also moving to terminate its links with the Trump Organization and brokerage giant JLL is washing its hands of Trump contracts, including the marketing of Trump International hotel in DC.

Deutsche Bank has not issued a formal statement and a spokesman for JLL told Real Estate Weekly, “We decline to offer additional comments at this time.”

But in a scathing rebuke, Signature Bank demanded Trump’s resignation for fanning the flames of hate that led to last week’s attack on the Capitol Building by thousands of Trump supporters.



 

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