![]() ![]() Signature overwhelmingly served commercial clients, meaning it had very large liabilities that weren't subject to FDIC insurance.When it seized Signature, NYDFS was in the middle of writing up its latest review of the bank's inadequate liquidity controls, a complaint it had about the bank going back years. ![]() ![]() What they're saying: "The Bank’s growth outpaced the development of its risk control framework," the state report says. The Empire State's review came amidst a slew of Federal reports on the broader banking failures in March.They even kept its bank-to-bank system FedWire running for 4.5 extra hours on March 10 to process billions in wires to avoid a default - but it wasn't enough.ĭriving the news: The New York State Department of Financial Services published its report on the fall of Signature Bank on Friday, saying the bank's liquidity problems and risky liabilities caused it to collapse as concerns about banks with similar customer profiles mounted. Government officials scrambled to save New York-based Signature Bank as troubles mounted last month. ![]()
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