Signature bank, the third U.S bank to collapse this week, was the same one that closed President Donald Trump’s accounts after January 6.
US regulators shut down Signature bank on Sunday.
A joint statement from the Federal Reserve, US Treasury, and the Federal Deposit Insurance Corporation (FDIC) confirmed the lender “was closed by its state chartering authority.”
The news comes following the collapse of Silicon Valley Bank, Silvergate.
The statement also noted:
“[SVB] depositors will have access to all of their money starting Monday, March 13… We are announcing a similar systemic risk exception for Signature Bank… 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.”
Signature bank closed Trump’s accounts while calling for him to resign in January 2021 – just over two years later the bank suffered a massive collapse.
A statement from Signature read at the time:
“We have never before commented on any political matter and hope to never do so again. 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.”
‘We witnessed the President of the United States encouraging the rioters and refraining from calling in the National Guard to protect the Congress in its performance of duty,” it continued.
“At this point in time, to ensure the peaceful transition of power, we believe the appropriate action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people,” the bank added.
Trump held two accounts with Signature bank with over 5 million dollars invested in them.
Earlier today, Joe Biden gave himself a pat on the back before claiming his administration stabilized the situation while blaming the problem on Trump.
“During the Obama-Biden administration, we put in place tough requirements on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank law to make sure the crisis we saw in 2008 would not happen again,” he said. “Unfortunately, the last administration rolled back some of these requirements.”