Trump Curse? Signature Bank Fails Two Years After Bank Closed President Trump’s Accounts

OPINION:  This article contains commentary which may reflect the author’s opinion

With eyes on the Silicon Valley Bank run and subsequent collapse in California, and the joint announcement by the Federal Reserve and the Treasury Sunday night that the government will cover not just the insured $250,000 amount per customer but ALL monies kept in the bank by customers, another bank on the east coast of the United States is also in severe trouble.

The Signature Bank is a New York state-chartered commercial bank and is FDIC-insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022.

Superintendent Adrienne A. Harris announced today that the New York Department of Financial Services (DFS) has taken possession of Signature Bank, pursuant to Section 606 of New York Banking Law, in order to protect depositors. DFS appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver of the bank.

DFS is in close contact with all regulated entities in light of market events, monitoring market trends, and collaborating closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate, and preserve the stability of the global financial system.

In regard to the west coast banking collapse, the following statement was just released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg:

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.

There has been no further explanation of how the government covers losses without using taxpayer money. In regard to the New York bank also being taken under the wing of the government, the statement continued:

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.

Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

As all are watching the dominoes fall, the connections between the failing New York bank and former President Donald Trump are noted.

Signature Bank in New York once had a close business relationship with the Trump family with Ivanka serving on the bank’s board of directors from 2011-2013, but the bank severed ties with President Trump and closed his accounts in protest of the January 6, 2021 events at the Capitol and called for his resignation.

Two years later Signature Bank has collapsed and was taken over by regulators.

Flashback to January 12, 2021 via Real Estate Weekly (excerpt):

For the first time in its 20-year history, prominent real estate lender Signature Bank has issued a comment on the nation’s politics with a call for President Donald Trump to resign. “We have never before commented on any political matter and hope to never do so again,” said the New York-based bank led by Joseph J. DePaolo. “However, as Americans we are deeply, deeply saddened by the rioting and insurrection which took place in the most sacred of American institutions, our United States Capitol.”

As well as closing Trump’s personal accounts at the bank, Signature Bank demanded Trump’s resignation for fanning the flames of hate that led to last week’s attack on the Capitol Building by thousands of Trump supporters. “We witnessed the President of the United States encouraging the rioters and refraining from calling in the National Guard to protect the Congress in its performance of duty.

“At this point in time, to ensure the peaceful transition of power, we believe the appropriate action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people.”

The Trump campaign steams forward, vindicated by the recently released footage of the Jan 6 events, while Signature Bank stumbles.


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