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 riot at the Capitol and called for his resignation. Two years later Signature Bank collapsed and was taken over by regulators.
Image via Yelp.
Flashback 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 has also warned it “will not do business in the future with any members of Congress who voted to disregard the Electoral College.”
…But in a scathing rebuke, 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.
“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,” said the statement.
“To witness a rioter sitting in the presiding chair of the U.S. Senate and our elected representatives being told to seek cover under their seats is appalling and an insult to the Republic.
“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.”
Flash forward two years to March 12:
Statement by the New York Department of Financial Services
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 receiver of the bank.
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.
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.
Joint Statement by Treasury, Federal Reserve, and FDIC
Washington, DC — The following statement was 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.
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.
The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.
CNN reported on Trump’s bank accounts based on a 2019 disclosure form. CNN called around to see if the other banks would close Trump’s accounts. Deutsche Bank had also announced it would no longer do business with Trump (excerpt):
Deutsche Bank will no longer do business with President Donald Trump, a move that will cut off his business from a major source of loans that once helped fund his golf courses and hotels.
Germany’s biggest bank has decided to refrain from future business with the president and his company, a person familiar with the bank’s thinking told CNN Business. The news, first reported by the New York Times, follows last week’s deadly riot at the US Capitol.
A spokesperson for Deutsche Bank (DB) declined to comment to CNN Business, citing a prohibition on discussing potential client relationships.
…Trump has a checking account at Signature Bank, according to a 2019 financial disclosure filed with the US Office of Government Ethics. A revocable trust in the president’s name also has a money market account at Signature Bank, according to the filing.
Trump also has ties to other major banks. The president held between $5 million and $25 million in checking-and-savings accounts at Capital One (COF) and between $500,000 and $1 million in accounts at JPMorgan Chase (JPM), according to the disclosure form.
Trump also listed up to $250,000 in a money market account at Bank United.
JPMorgan declined to comment. A Capital One spokesperson said the bank does not discuss current or former customer relationships. Bank United did not respond to a request for comment.
Trump’s disclosure forms indicated he held up to $50,000 in a First Republic (FRC) checking account. However, a spokesman for First Republic (FRC) told CNN Business that single Trump account was inactive and is now closed. The bank declined to say when the account was closed.