Former President Donald Trump may be counting his blessings Monday morning after hearing the news that a bank that refused his business in 2021 is now on the skids.
“Signature Bank refused his business following the Capitol riot, now that the New York-based lender is the latest institution to be shut down by regulators,” the Daily Wire reported.
News of the New York state regulators shutting down the bank came just two days after the collapse of Silicon Valley Bank in California. The concern now is that this could lead to depositors withdrawing their savings from banks across the country, potentially causing instability in the banking system.
“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,” Signature Bank said in a statement when executives rejected Trump’s business.
“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 statement continued.
According to a report by CNBC, as of the end of 2022, Signature Bank had $110.4 billion in total assets and $88.6 billion in total deposits, with a significant investment in volatile cryptocurrencies. Following the announcement by state regulators on Sunday, the Federal Deposit Insurance Corporation assumed control of the bank, said the outlet.
Silicon Valley Bank, the nation’s 16th-largest lender, collapsed late last week in the biggest bank failure since Washington Mutual in 2008. In response, federal officials reassured depositors that they would be fully compensated.
“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,” federal officials from a number of agencies including the Treasury Department, noted in a joint statement issued on Sunday. “All depositors of this institution will be made whole,” noting “as with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”
It remains uncertain how depositors will be compensated following the closure of Silicon Valley Bank. While the FDIC only provides insurance for deposits up to $250,000, the bank’s clients reportedly include tech firms, wineries, and venture capitalists with significant cash reserves. Additionally, Treasury Secretary Janet Yellen stated on a Sunday morning news program that there would be no bailout for Silicon Valley Bank, adding to the uncertainty surrounding the situation, the Daily Wire noted further.
In addition, both banks had significant investments in volatile cryptocurrencies. Also, they were both proponents of Environmental, Social, and Governance policies, which prioritize woke ideologies over profit maximization.
President Joe Biden tried to lend some assurance to depositors in a speech early Monday.
“Americans can have confidence that the banking system is safe, your deposits will be there when you need them,” he said. “No losses will be borne by the taxpayers.”
