Washington: Another bank has gone bankrupt in America. After the bankruptcy of Silicon Valley Bank, now Signature Bank has also gone bankrupt. In the last two days, 2 banks have been closed in America and even after this, the markets of America are seeing a boom. However, the US government has assured the people that depositors’ money is safe and they will be able to withdraw their money.
There has been upheaval before
After Silicon Valley Bank, which was included in the list of America’s top 16 banks, Signature Bank has become the next victim of the turmoil in the banking sector. State regulators shut down New York-based Signature Bank on Sunday, the failure of Signature follows Friday’s shutdown of Silicon Valley Bank. Let us tell you that earlier during the financial crisis of 2008, Washington Mutual was closed.
Action will be taken against those responsible
On the other hand, US President Joe Biden said that strict action will be taken against those who are responsible for the collapse of the banks. Biden has told the depositors of both the banks that their money is safe. He said that I have directed to meet with Secretary Yellen, National Economic Council Director Banking Regulator to resolve the Silicon Valley Bank and Signature Bank crisis.
Regulators made bridge bank
The Federal Deposit Insurance Corporation on Sunday set up a bridge bank, which will allow customers to access their funds on Monday. The Federal Deposit Insurance Corporation said that Signature Bank depositors and borrowers would also become Bridge Bank customers. It has been said that now the customers of both the banks will be able to withdraw their money and transact through the bridge bank.