Signature Bank in New York once had a close business relationship with the Trump family with Ivanka serving on the bank’s board of directors from 2011 to 2013, but the bank severed ties with President Trump and closed its accounts in protest of the January 6, 2021 riot on Capitol Hill and called for his resignation. Two years later, Signature Bank collapsed and was taken over by regulators.
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Flashback January 12, 2021 via Real Estate Weekly (extract):
For the first time in its 20-year history, prominent home lender Signature Bank has released a commentary on the country’s politics calling on President Donald Trump to step down.
“We have never commented on a political issue and hope never to do so again,” the New York-based bank headed by Joseph J. DePaolo said. “However, as Americans we are deeply saddened by the rioting and insurrection that has taken place in the most sacred of American institutions, our United States Capitol.”
In addition to closing Trump’s personal accounts at the bank, Signature also warned that he “will not do business in the future with members of Congress who voted to ignore the Electoral College.”
… But in a scathing rebuke, Signature Bank demanded Trump’s resignation for fanning the flames of hatred that led to last week’s attack on the Capitol by thousands of Trump supporters.
“As Americans, we are deeply saddened by the rioting and insurrection that has taken place in America’s most sacred institution, our United States Capitol,” the statement read.
“To see a rioter sitting in the chair of the US Senate and our elected representatives being told to hide under their seats is appalling and an insult to the Republic.
“We have seen the President of the United States encourage the rioters and refrain from calling in the National Guard to protect Congress in the line of duty.
“At this point, to ensure the peaceful transition of power, we believe the appropriate course of action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people.”
Flash before two years until March 12:
Statement from the New York Department of Financial Services
Superintendent Adrienne A. Harris announced today that the New York Department of Financial Services (DFS) has taken possession of Signature Bank pursuant to Section 606 of the New York Banking Law to protect depositors. DFS appointed the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver.
Signature Bank is a New York State chartered commercial bank and is FDIC insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of 31 December 2022.
DFS is in close contact with all regulated entities in light of market events, monitors market trends, and works closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate, and safeguard the stability of the global financial system.
Joint statement from the Treasury, Federal Reserve and FDIC
Washington, DC – The following statement was released by Treasury Secretary Janet L. Yellen, Federal Reserve Board Chairman Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg:
Today, we are taking decisive action to protect the US economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to play its vital role of protecting deposits and providing access to credit to households and businesses in a way that supports strong and sustainable economic growth.
After receiving a recommendation from the FDIC and Federal Reserve Boards, and consulting with the President, Secretary Yellen approved actions allowing the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, Calif. , in a way that fully protects all depositors . Depositors will have access to all of their money from Monday, March 13. No loss associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the Silicon Valley Bank resolution, no loss will be borne by the taxpayer.
Shareholders and certain unsecured creditors will not be protected. Senior management was also removed. Any loss incurred by the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment from the banks, as required by law.
Finally, the Federal Reserve Board announced on Sunday that it will make additional funds available to eligible depository institutions to ensure banks have the ability to meet the needs of all of their depositors.
The US banking system remains resilient and rests on solid foundations, thanks in large part to the reforms undertaken after the financial crisis which provided better protections for the banking sector. These reforms combined with today’s actions demonstrate our commitment to taking the necessary measures to ensure the security of depositors’ savings.
CNN reported on Trump’s bank accounts based on a 2019 disclosure form. CNN called to see if other banks would close Trump’s accounts. Deutsche Bank had also announced that it would no longer do business with Trump (excerpt):
Deutsche Bank will no longer do business with President Donald Trump, a move that will cut his company off from a major source of loans that once helped finance his golf courses and hotels.
Germany’s largest bank has decided to refrain from doing business with the president and his company, a person familiar with the bank’s thinking told CNN Business. The news, first reported by The New York Times, follows last week’s deadly riot at the US Capitol.
A spokesperson for Deutsche Bank (DB) declined to comment on CNN Business, citing a ban on discussing potential customer relationships.
… Trump has a checking account at Signature Bank, according to a 2019 financial statement filed with the US Office of Government Ethics. A revocable trust in the president’s name also has a money market account at Signature Bank, according to the filing.
Trump also has ties to other major banks. The president held between $5 million and $25 million in checking and savings accounts at Capital One (COF) and between $500,000 and $1 million in accounts at JPMorgan Chase (JPM), according to the disclosure form.
Trump also posted up to $250,000 in a money market account at Bank United.
JPMorgan declined to comment. A Capital One spokesperson said the bank does not discuss current or past customer relationships. Bank United did not respond to a request for comment.
Trump’s disclosure forms indicated he held up to $50,000 in a First Republic Current (FRC) account. However, a spokesperson for the First Republic (FRC) told CNN Business that only one Trump account was inactive and was now closed. The bank declined to say when the account was closed.