Why Is Signature Bank (SBNY) Stock Down Today?

  • Signature Bank (SBNY) stock is taking a beating Monday after closing.
  • That’s due to regulators seizing the bank.
  • Customers can still withdraw funds from the financial institution.
SBNY Stock - Why Is Signature Bank (SBNY) Stock Down Today?

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Signature Bank (NASDAQ:SBNY) stock continued to fall on Monday as the closing of the bank over the weekend caused concern for investors.

Signature Bank is among the financial companies that regulators have seized in an effort to stop a banking crisis. This comes as SVB Financial’s (NASDAQ:SIVB) Silicon Valley Bank also closes down, and crypto bank Silvergate Capital (NYSE:SI) fails.

The government’s part in this includes a bailout to ensure customers of Signature Bank are able to withdraw funds. That extends to both insured and uninsured money held at the financial institution.

However, Signature Bank’s situation isn’t quite the same as SVB Financial and Silvergate Capital’s. J. Austin Campbell, an adjunct professor of Columbia Business School, said the following about the news to Bloomberg:

“What happened at Silvergate and SVB was a very traditional bank failure. This, unless there was a bigger run on deposits than we know about, is less so. If there’s not some pretty gory details that came out after about the balance sheet, it’s hard to figure out why they were singled out.”

SBNY’s Customers

It’s worth pointing out that Signature Bank is similar to Silvergate Capital in the sense that it has many crypto customers. For example, Coinbase (NASDAQ:COIN) said on Friday that it has $240 million stored with the bank.

SBNY stock trading is halted as of Monday morning.

There’s more stock market news worth knowing about below!

We’ve got all of the latest coverage for how the bank bailout is affecting stocks on Monday! That includes what’s happening with SoFi Technologies (NASDAQ:SOFI), Roku (NASDAQ:ROKU), and bank stocks. You can read up on all of that news at the links below!

More Monday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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