- FDIC has taken control of Silicon Valley Bank’s deposits and closed Silicon Valley Bank today.
- Signature Bank’s Austin Campbell claims it could be a profit.
- Signature Bank shares fell more than 20% on Friday.
After the collapse of SVB Financial, a crypto-banking peer, Signature Bank’s shares fell more than 20% today.
SVB is the biggest U.S. bank collapse
On Friday, the Federal Deposit Insurance Corporation closed the said bank and took control of its deposits – a development that particularly shook financial stocks since such a bank failure was last seen only during the global financial crisis.
Remember that news follows an announcement Silvergate Capital also announced that it will liquidate the crypto bank. A number of crypto companies have chosen Signature Bank to replace it.
Still, the New York-based commercial bank says it’s exposure to digital assets is fairly small. “SBNY” is now down about 35% for the year.
Pro explains everything Signature Bank means to him
Austin Campbell from Zero Knowledge Consulting sees the positive side of things. He expects Silvergate and the SVB news Signature Bank will actually reap the benefits.
He’s convinced that the diversified deposit base will help it avoid falling prey to the same structural weakness. Campbell tweeted this statement today:
Remember that you must be a forced buyer. The depositors at SVB move to other banks, which is likely to increase the position of SBNY and its competitors.
His view is in line with the JPMorgan analyst Vivek Juneja who also doesn’t expect the SVB fiasco to spill over to other banks. Signature Bank reported that its net income rose just over 10% in January compared to the previous year. its fourth financial quarter.
