Since the closure of SVB, customers of Signature Bank have started withdrawing their deposits. In that event, their share prices started falling. Not only that, the shares of Signature Bank’s peers also fell.
Despite this, the bank’s leadership was optimistic that the storm could be weathered. Because, yesterday Sunday morning, the speed of withdrawing money had decreased a lot. But at one stage the regulatory body told them that they are going to close the bank. After hearing this, the sky fell on the head of the bank’s leadership. The New York State Bank Regulatory Agency has taken over its regulation in coordination with the FDIC.
After this incident, US medium-sized banks are in danger. Uninsured depositors are shifting deposits from small and medium-sized banks to large banks such as JP Morgan and Citibank. In this situation, MBCA made this appeal to the FDIC in desperation.
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