BREAKING: Another Bank Has Been Closed By Regulators As Financial Meltdown Continues

Just days after the collapse of Silicon Valley Bank, State Authorities have closed down Signature Bank, citing “systemic risk”. According to reports, shareholders and debtholders will not be protected.

Here’s what we know:

NEW:

*Signature Bank has been closed

*All depositors of Silicon Valley Bank and Signature Bank will be fully protected

*Shareholders and certain unsecured debtholders will not be protected

*New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits pic.twitter.com/LKipIRMg1T

— Nick Timiraos (@NickTimiraos) March 12, 2023

Here is the joint statement by the Department of the Treasury, Federal Reserve, and FDIC:

Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

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. 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.

Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

Here’s the latest from Twitter:

Fed Panics: Signature Bank Suddenly Shuttered; Fed, TSY, FDIC Announce Another Banking System Bailout https://t.co/sicrbZjxNp

— zerohedge (@zerohedge) March 12, 2023

The Fed is allowing banks to exchange their junk assets for a short-term loan. This protects depositors from imminent bank runs. We'll see if it stems contagion, when the glue sniffing futures spike wears off.

Signature Bank now imploded.

Stock holders not protected. pic.twitter.com/TFyh5fqhJC

— Mac10 (@SuburbanDrone) March 12, 2023

"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," Treasury, Federal Reserve, and FDIC said in a joined statement Sunday evening.https://t.co/jOkCqHoYfu pic.twitter.com/puSISzCiEz

— Chief Nerd (@TheChiefNerd) March 12, 2023

The Federal Reserve claims the banking system is “resilient”:

U.S. Federal Reserve and Treasury: banking system remains resilient and on a solid foundation.

— unusual_whales (@unusual_whales) March 12, 2023

This is still a developing story. Stay tuned for more…