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.”
After the DFS put Signature into receivership, the Federal Deposit Insurance Corp. took over the institution and set up a bridge bank to serve clients. The collapse — the third-largest bank failure in U.S. history — followed a surge in customer withdrawals on Friday that totaled about 20% of the company’s deposits, according to a person familiar with the matter.
