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Regulatory authorities in the United States closed Signature Bank, based in New York, on Sunday. This is the second financial institution closed after the collapse of Silicon Valley Bank, according to a statement released by the Federal Reserve (Fed).
"Today we are taking decisive action to protect the United States economy by strengthening public confidence in our banking system," says the statement signed by Federal Deposit Insurance Corporation (FDIC).
Signature Bank had previously maintained a business relationship with former U.S. President Donald Trump and his family, providing them with checking accounts and financing various business endeavours.
However, in the wake of the deadly January 6th riots at the U.S. Capitol, Signature Bank decided to sever ties with Trump and publicly called for his resignation.
In response to the closure of Signature Bank, a New York-based regional lender, US President Joe Biden has pledged to take action against those responsible for the banking crisis in the country.
Biden also announced that he will address the nation on Monday to discuss the state of the US banking system and to reassure Americans after the recent failures of Silicon Valley Bank and Signature Bank.
In a statement released on Sunday night, Biden stated that he will deliver remarks on how the US can maintain a resilient banking system to safeguard its historic economic recovery. He also promised to hold those responsible for the current banking crisis fully accountable.
Some major clients of Signature Bank?
Signature Bank had previously counted some individuals associated with the Trump Organization, including Jared Kushner (Mr Trump's son-in-law) and Kushner's father, Charles, among its clients.
In addition, the bank had provided financing for one of Trump's business ventures, specifically his Florida-based golf course.
Signature Bank lender with a significant number of crypto clients.
- Millennium Management LLC: A leading global investment management firm with over $48 billion in assets under management.
- Ackman-Ziff Real Estate Group: A real estate capital advisory firm that provides debt and equity financing solutions for commercial real estate projects.
- The Robin Hood Foundation: A nonprofit organization that fights poverty in New York City by funding over 200 poverty-fighting programs.
- Kramer Levin Naftalis & Frankel LLP: A full-service law firm with offices in New York, Paris, and Silicon Valley, serving clients in a variety of industries.
- Peloton Interactive, Inc.: A fitness technology company that provides interactive workout classes to its subscribers through its connected fitness products.
- Tiger Global Management LLC: A leading investment firm that invests in technology companies, consumer brands, and financial services companies.
- The Metropolitan Museum of Art: One of the largest and most comprehensive art museums in the world, located in New York City.
- The Kushner Companies: A real estate development company that has developed properties in New York, New Jersey, and other states.
- American Kennel Club: A nonprofit organization that promotes the breeding, showing, and welfare of purebred dogs.
- Plaid Inc.: A fintech company that provides a platform for financial data connectivity, allowing consumers to connect their bank accounts to third-party apps and services.
Top Shareholders
| 11.7% | The Vanguard Group, Inc. | 7,291,217 | $9.5b | 1.67% | 0.01% | |
| 8.6% | Capital Research and Management Company | 5,355,882 | $7.0b | 27.51% | 0.03% | |
| 7.54% | BlackRock, Inc. | 4,697,988 | $6.1b | 1.95% | 0.01% | |
| 6.6% | T. Rowe Price Group, Inc. | 4,113,870 | $5.3b | -11.47% | 0.04% | |
| 5.04% | State Street Global Advisors, Inc. | 3,140,523 | $4.1b | 3.14% | 0.02% | |
| 4.46% | Alecta Pensionsförsäkring, ömsesidigt | 2,780,000 | $3.6b | 0% | 0.71% | |
| 3.98% | FMR LLC | 2,476,966 | $3.2b | 59.07% | 0.02% | |
| 2.23% | Invesco Capital Management LLC | 1,387,567 | $1.8b | 40.88% | 0.09% | |
| 2.2% | Geode Capital Management, LLC | 1,369,231 | $1.8b | 5.31% | 0.01% | |
| 2.1% | Parnassus Investments, LLC | 1,309,587 | $1.7b | 1.1% | 0.29% | |
| 1.77% | Davis Capital Partners, LLC | 1,100,000 | $1.4b | 10% | 5.52% | |
| 1.6% | Brown Brothers Harriman & Co., Asset Management Arm | 997,296 | $1.3b | 5.95% | 0.62% | |
| 1.59% | EdgePoint Investment Group Inc. | 991,516 | $1.3b | 18.03% | 0.54% | |
| 1.4% | Renaissance Technologies LLC | 873,931 | $1.1b | 394.66% | 0.11% | |
| 1.03% | Massachusetts Financial Services Company | 642,895 | $835.8m | 35.33% | 0.01% | |
| 0.95% | ClearBridge Investments, LLC | 590,377 | $767.5m | -7.42% | 0.05% | |
| 0.94% | J.P. Morgan Asset Management, Inc. | 584,602 | $760.0m | 12.21% | 0.01% | |
| 0.93% | Northern Trust Global Investments | 582,107 | $756.7m | 3.86% | 0.01% | |
| 0.93% | BNY Mellon Asset Management | 580,799 | $755.0m | 15.26% | 0.01% | |
| 0.86% | Voloridge Investment Management, LLC | 533,859 | $694.0m | 61.16% | 0.26% | |
| 0.83% | Mirova US LLC | 514,969 | $669.5m | -19.93% | 0.77% | |
| 0.8% | BNPP Asset Management Holding | 495,967 | $644.8m | 7.92% | 0.06% | |
| 0.79% | Scott Shay | 494,352 | $642.7m | 2.02% | no data | |
| 0.78% | Charles Schwab Investment Management, Inc. | 487,858 | $634.2m | 4.49% | 0.01% | |
| 0.77% | Mackenzie Financial Corporation |
What is Signature Bank?
Signature Bank is a New York-based full-service commercial bank that specializes in serving private clients and small to medium-sized businesses.
The bank was founded in 2001 by a team of industry veterans and has since grown rapidly, expanding its operations across the United States.
Signature Bank offers a wide range of banking services, including commercial lending, deposit products, treasury management, foreign exchange, and wealth management.
The bank prides itself on its commitment to providing exceptional service to its clients and has earned a reputation as a trusted financial partner for businesses and individuals alike.
One of Signature Bank's unique strengths is its focus on developing long-term relationships with its clients. The bank's relationship managers work closely with clients to understand their specific needs and tailor solutions that meet those needs.
This personalized approach has helped the bank build a loyal client base and has contributed to its success in a competitive banking landscape.
In recent years, Signature Bank has also emerged as a leading provider of banking services to the cryptocurrency industry.
The bank has developed relationships with several major players in the crypto space, including exchanges, trading firms, and custodians.
Signature Bank's willingness to work with cryptocurrency companies has helped position it as an innovative and forward-thinking institution in the banking industry.
Keep Reading
- These 10 Indians are major client of Silicon valley bank
- List of major clients of Silicon valley bank
- Silicon Valley bank closed, here is how investors can get their money back
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