Banks are safe, Biden tells US after 2nd collapse
York was stable, that we can project calm,” Hochul said at a news conference Monday.
She said a high volume of withdrawals that began last week continued with online transactions through the weekend. The bank was open Monday under the name of Signature Bridge Bank.
Signature, which was founded more than two decades ago, has about 40 offices across the country and says it focuses on banking for privately owned businesses, their owners and senior managers.
Though Sunday’s steps marked the most extensive government intervention in the banking system since the 2008 financial crisis, the actions were relatively limited compared with 15 years ago.
The two failed banks themselves have not been rescued, and taxpayer money has not been provided to them.
Some prominent Silicon Valley executives feared that if Washington did not rescue their failed bank, customers would make runs on other financial institutions in the coming days. Stock prices plunged over the last few days at other banks that cater to technology companies, such as First Republic and Pacwest Bank.
Among Silicon Valley Bank’s customers are a range of companies, including many California wineries that rely on the bank for loans, and technology startups devoted to combating climate change.
Tiffany Dufu, founder and CEO of The Cru, a New York-based career coaching platform and community for women, had her money tied up at Silicon Valley Bank.
She said in video on Linkedin that she had to pay employees out of her personal account. With two teenagers to support who will be heading to college, she said, she was relieved to hear that the government intends to make depositors whole.
“Small businesses and early stage startups don’t have a lot of access to leverage in a situation like this, and we’re often in a very vulnerable position, particularly when we have to fight so hard to get the wires into your bank account to begin with, particularly for me, as a Black female founder,” Dufu said.