The largest US banks that failed

US banks

US banks that failed: another of the largest US banks went bankrupt in a matter of hours. The world is talking about a new global crisis.

US regulators have decided to close the New York-based Signature Bank. This was the second major bankruptcy in the US banking market in three days. Earlier it became known about the collapse of Silicon Valley Bank. 

 Banks of the USA: Silicon Valley Bank

Silicon Valley Bank was founded in 1983 in San Jose, California. For 40 years, the bank has not even tried to enter the retail market and gain popularity among citizens. Instead, he became “widely known in narrow circles” of the startup industry.

In 2018, the bank’s assets amounted to USD 49 billion, at the end of 2020 – USD 102 billion, and at the end of 2022 – USD 209 billion. This allowed it to become one of the twenty largest in the United States.

The bankruptcy of SVB was the largest since the global financial crisis of 2008, when Washington Mutual Bank with assets worth $307 billion became insolvent. As of the end of last year, 89% of its deposits worth about $175 billion were not insured. 

SVB Bank was placed under the supervision of the Federal Deposit Insurance Commission, and the balance of its capital was used to compensate and repay debts.

 Banks of the USA: Signature Bank

Signature was a commercial bank with offices in New York, Connecticut, California, Nevada, and North Carolina. It had nine business lines, including commercial real estate and digital asset banking. The bank was in demand among cryptocurrency holders. As of September 2022, almost a quarter of its deposits were in the cryptocurrency sector. In December, the bank announced that it would cut its cryptocurrency-related deposits by $8 billion.

The Federal Deposit Insurance Corporation (FDIC) has taken control of Signature, which had assets of $110.36 billion and deposits of $88.59 billion at the end of last year.


Author: Daria Skotchenko

Photo: pexels

 
 

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