Signature Bank Was Seized After Leaders Caused ‘Crisis of Confidence’
- Failure ‘had nothing to do with crypto,’ New York DFS says
- Bank lost 20% of deposits on Friday, or about $17.8 billion
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Signature Bank was seized by the government Sunday after regulators lost faith in management and depositors fled, according to New York officials.
“The bank failed to provide reliable and consistent data, creating a significant crisis of confidence in the bank’s leadership,” the state’s Department of Financial Services said in an emailed statement Tuesday. “The decision to take possession of the bank and hand it over to the FDIC was based on the current status of the bank and its ability to do business in a safe and sound manner on Monday.”