BY Warner Todd Huston, The Western JournalMarch 13, 2023
1 year ago
BY 
 | March 13, 2023
1 year ago

Signature Bank Cut Ties with Trump After Jan. 6 - Guess Who Just Came Knocking on Its Door?

Signature Bank -- which cut ties with then-President Donald Trump in the wake of the Jan. 6, 2021, Capitol incursion -- was shut down by federal regulators Sunday evening.

The move was announced in a joint statement by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp.

The shutdown of Signature -- which had 40 branches, assets of $110.4 billion and deposits of $88.6 billion at the end of last year -- represents the third-largest bank failure in U.S. history, according to CNBC.

The bank was reeling from its investments in Silicon Valley Bank -- which had been seized by federal regulators two days before -- and its deep exposure in cryptocurrencies, which have been crashing for months, according to The Wall Street Journal.

Sunday's seizure made it the second major banking institution to fail in recent days after federal regulators moved to take control of SVB on Friday.

Signature was racing to line up a buyer to shore up its finances but was unable to find a deal before Monday, prompting federal regulators to move in to prevent a sudden collapse.

As with SVB, regulators said the U.S. government will ensure that all depositors get their money, even those whose accounts are in excess of the $250,000 FDIC insurance limits.

Signature had moved to specialize in cryptocurrencies and garnered one of the largest crypto portfolios in the industry, the Journal reported: About 27 percent of its deposits came from crypto investors.

But with the collapse of Democratic mega-donor Sam Bankman-Fried’s crypto exchange, FTX, Signature lost billions in deposits, setting it on the path to failure.

The bank tried to stanch the bleeding late last year by dialing back on crypto and parting ways with crypto clients such as Binance and Silvergate Capital Corp., but it wasn't soon enough to stop the slide.

Signature's stock had lost 75 percent over the last 12 months.

It all led to federal regulators stepping in to prevent more panic as the New York Department of Financial Services placed the bank into receivership with the FDIC on Sunday.

"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," the Treasury Department, Fed and FDIC said in their joint statement.

"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," they said.

Still, even as depositors will be able to take their full measure, equity and bondholders at both banks will be wiped out, a senior Treasury official said Monday, according to CNBC.

These two failures are causing small runs on other banks, the outlet reported. First Republic Bank suffered a large number of depositors closing their accounts Monday, but it was able to meet the withdrawal demands after getting some help from JPMorgan Chase.

Still, First Republic Bank's stock plunged 75 percent as trading opened Monday and safeguards kicked in to stop trading in hopes that the stock would stabilize. Federal officials hoped to avoid this being repeated in banks across the nation by moving quickly to shutter SVB and Signature.

Of note, Signature is one of the banks that cut ties with Trump days after the Jan. 6, 2021, Capitol incursion, which Democrats claimed was an "insurrection."

The New York Post reported Jan. 12, 2021, that Signature and Deutsche Bank had informed the then-president they were ending their business relationships with him.

The report said Signature confirmed it had "begun the process of closing Trump’s two personal accounts" and would "not do business in the future with any members of Congress who voted to disregard the Electoral College" following the November 2020 presidential election.

It seems as though some financial institutions have been more focused on woke priorities than managing their assets, but their apparent financial malfeasance is finally starting to catch up to them.

To borrow a phrase from one of Barack Obama's closest buddies, their chickens are coming home to roost.

This article appeared originally on The Western Journal.

Written by: Warner Todd Huston, The Western Journal

NATIONAL NEWS

SEE ALL

'Squad' Members Omar, Bush Mistake Memorial Day For Veterans Day

In a mix-up on social media, Representatives Ilhan Omar and Cori Bush initially confused Memorial Day with Veterans Day in their heartfelt posts, leading to…
2 hours ago
 • By Staff Writers

Trump Endorses Hung Cao In Virginia Senate Republican Primary

Former President Donald Trump has thrown considerable political influence on retired Navy Capt. Hung Cao in Virginia's hotly contested Republican Senate primary. On Sunday, Trump…
2 hours ago
 • By Staff Writers

Bill Walton, Basketball Legend and Celebrated Broadcaster, Passes at 71

Basketball icon Bill Walton, renowned for his on-court prowess and memorable broadcasting career, has died at the age of 71. According to Breitbart News, Bill…
2 hours ago
 • By Staff Writers

Actress Cheated In Fictional Hillary Clinton Documentary Scam

An ex-soap opera star was swindled out of a considerable sum by a trusted friend exploiting aspirations of documenting a major political campaign. Starting in…
2 hours ago
 • By Staff Writers

House GOP's Strategic Legislation Puts Democrats In Tight Spot Before Election

In recent legislative maneuvers, House Republicans have strategized votes likely to challenge the electoral prospects of Democratic lawmakers in the upcoming November elections. House Republicans…
4 hours ago
 • By Staff Writers

DON'T WAIT.

We publish the objective news, period. If you want the facts, then sign up below and join our movement for objective news:

    LATEST NEWS

    Newsletter

    Get news from American Digest in your inbox.

      By submitting this form, you are consenting to receive marketing emails from: American Digest, 3000 S. Hulen Street, Ste 124 #1064, Fort Worth, TX, 76109, US, http://americandigest.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact.
      Christian News Alerts is a conservative Christian publication. Share our articles to help spread the word.
      © 2024 - CHRISTIAN NEWS ALERTS - ALL RIGHTS RESERVED
      magnifier