Regulators close Signature bank, announce plan to make depositors whole

“New York state’s Department of Financial Services said on Sunday it has taken possession of New York-based Signature Bank and appointed the U.S. Federal Deposit Insurance Corp as receiver, the second bank failure in a matter of days,” reported Reuters.

“Signature Bank had deposits totaling approximately $88.59 billion as of December 31,” adds the news.

The news also mentioned that the US Treasury Department along with other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole, and that “no losses will be borne by the taxpayer.”

Also read: US Treasury Department, Fed unveil action plan on Silicon Valley Bank fallout

Risk appetite improves

The news allows traders to begin the week on a positive footing after a downbeat close on Friday. The same propels S&P 500 Futures after a negative close the previous day.