OPINION: This article may contain commentary which reflects the author’s opinion.
Signature Bank of New York closed former President Donald Trump’s account following the aftermath of the 2020 presidential election. Now, that same “woke” bank has been closed.
Regulators seized Signature Bank of New York on Sunday, the second failure of a regional bank in about 48 hours.
“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 role 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,” The U.S. Department of the Treasury, Federal Reserve, and FDIC said in a joint statement.
“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,” the statement added.
*Signature Bank has been closed
*All depositors of Silicon Valley Bank and Signature Bank will be fully protected
*Shareholders and certain unsecured debtholders will not be protected
*New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits pic.twitter.com/LKipIRMg1T
— Nick Timiraos (@NickTimiraos) March 12, 2023
Interestingly enough, this was the same bank that went “woke” and cut ties with Trump nearly two years ago.
On January 12, 2021, the bank told the New York Post that it began the process of closing Trump’s two personal accounts and “will not do business in the future with any members of Congress who voted to disregard the Electoral College.”
Signature Bank shared a statement on its website slamming Trump, saying, “We have never before commented on any political matter and hope to never do so again.”
The statement continued, “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.”
Bill Ackman, a billionaire hedge fund manager, warned of an impending economic collapse that could occur when banks open on Monday morning after the collapse of Silicon Valley Bank over the weekend.
Ackman, of Pershing Square Capital Management, urgently called on President Joe Biden and his administration to intervene and protect all of the bank’s depositors. He cautioned that failure to act could have a ripple effect on other smaller banks in the industry.
According to the Daily Mail, Ackman is worried that customers may quickly withdraw money from their accounts due to concerns about the banking system’s instability. As such, he implored the federal government to take action and correct a mistake that could soon become irreversible by Monday morning to avoid a potential catastrophe.
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Ackman’s urgent call came on the heels of a video message from SVB Financial Group’s CEO, Greg Becker, acknowledging the “incredibly difficult” 48 hours leading up to the bank’s collapse on Friday.
In a lengthy statement released on Twitter, Ackman laid out what he believes are all the potential ramifications of inaction on the part of the government should Biden decide not to step in.