Why Did Regulators Close Signature Bank? It's Not Entirely Clear
Three banks have closed or been put under receivership over the past week. Of the three, the one that still prompts the most questions is Signature Bank (NASDAQ: SBNY), largely because it seemed to have enough capital and liquidity to survive before regulators shut it down on Sunday.
I'm not suggesting that regulators shouldn't have closed the bank, or that the bank didn't need to be closed, just that the situation is still a bit murky.
We know that Silvergate Capital (NYSE: SI) and Silicon Valley Bank, which was owned by SVB Financial (NASDAQ: SIVB), saw significant deposit outflows that resulted in the two banks having to sell bonds that were massively underwater, which effectively wiped out most or all of their equity.
Source Fool.com
