NY’s Hochul Said Rescue of Signature Bank Is ‘Not a Bailout’

New York Governor Kathy Hochul said the takeover of Signature Bank by federal regulators on Sunday “was not a bailout” that puts state taxpayers at risk.

“This is simply using fees that are assessed on all banks,” Hochul said at a briefing Monday with Adrienne Harris, superintendent of the state Department of Financial Services. “This is an unusual circumstance, but the main message I want to deliver to New Yorkers is that their money is secure.”

Federal regulators swept the lender into receivership just days after the demise of fellow crypto-friendly bank Silvergate Capital Corp. and SVB Financial Group’s Silicon Valley Bank. The announcement coincided with a slate of measures out of Washington, including the Federal Reserve’s creation of a new lending program for banks, aimed at ensuring they can meet any customer requests to withdraw money.

New York officials said on Sunday that they were closing Signature Bank and turning it over to federal regulators amid a broader effort to prevent the crisis from spreading further.

“We don’t have any evidence that anyone else is in a situation like Signature at this moment, but again we want to make sure there’s not a ripple effect because of people getting anxious, start withdrawing, then that creates instability,” Hochul said. 

Read more: SVB Crisis Exposes Lurking Systemic Risk of Tech Money Machine