According to a new report, one of the major banks that recently had to be shut down, Signature Bank, had previously declined to do business with former President Trump.
The news that the bank had been shut down by officials from the state of New York came on Sunday, only two days after the Silicon Valley Bank, which was situated in California, failed.
Concerns have been raised as a result of the activities that unsettled depositors may try to withdraw their funds from other lenders around the country.
A stunning move which could result in the instability of the financial system.
Back in 2021, though, Signature Bank did not desire the business of former President Trump, who is a billionaire.
As of the end of 2022, it was reported that Signature Bank had a total asset value of $110.4 billion, including a significant investment in the highly volatile cryptocurrency market, and total deposits of $88.6 billion.
After the action taken on Sunday by state regulators, the Federal Deposit Insurance Corporation assumed management of the bank.
The failure of Silicon Valley Bank, the sixteenth-largest lender in the United States, was the most significant failure of a bank since 2008.
On Sunday, federal officials reiterated their stance that Silicon Valley and Signature Bank will compensate all of the bank’s depositors in full.
It was not entirely obvious how depositors would be able to get their money back. Although the FDIC covers deposits up to a maximum of $250,000, it is thought that Silicon Valley Bank had huge cash reserves for a variety of clients, including venture capitalists, wineries, and IT businesses.
Treasury Secretary Janet Yellen added more confusion to the situation when she stated on a Sunday morning TV broadcast that there will be no rescue for Silicon Valley Bank.
Both Silicon Valley and Signature banks were strong proponents of policies, which prioritized the promotion of woke world-views over the pursuit of maximum financial gain.