The FDIC shuttered Signature Bank on Sunday, March 12, 2023, following a bank run, which is when multiple depositors pull their funds out at the same time. Per a NY regulatory report, Signature Bank held $110.36 billion in assets and $88.59 billion in deposits as of year-end 2022.nnThe collapse of SVB on Friday, March 10, 2023, prompted fears among Signature Bank customers, who withdrew a total of $10 billion on Friday alone. Customers moved their funds to more stable, larger banks like Citigroup and JPMorgan Chase.nnnnnAnother significant contributing factor to the bank run was the closing of crypto-centric Silvergate Bank. Silvergate’s wind-down was more expected, but fears over the security of cryptocurrency holdings spread to Signature Bank customers.nnnnnAs part of its expansion efforts, Signature Bank opened itself to cryptocurrency depositors in 2018. The bank established a 24/7 payments network for crypto clients. At the time of closing, $16.5 billion of the bank’s deposits were from digital-asset customers.nnnnnFormer U.S. Representative Barney Frank served on the Signature Bank board. He expressed that the bank’s executives were shocked by the sudden move to close the bank. The bank explored “all options” to shore up liquidity, including courting potential buyers and looking for additional capital.nnnnnBy Sunday, the bank run slowed, and executives believed the situation had stabilized. Instead, the FDIC removed the bank’s managers and closed the institution. Regulators are currently in the sales process for the bank while maintaining a bridge bank to serve the needs of its customers.nnnnnOne possible reason for the bank’s sudden turmoil is the easing of banking regulations implemented in the wake of the 2008 Financial Crisis. Signature Bank board member Barney Frank was a co-sponsor of the 2010 Dodd-Frank Act, which set new banking regulations intended to help prevent a similar financial crash.nnnnnAs a member of Signature Bank’s board, Frank advocated for the easing of regulations in the Dodd-Frank Act. One of the Act’s provisions applied regulations to “too big to fail” institutions, banks holding $50 billion or more in assets. The bank’s board was part of a push to increase that threshold to $250 billion, allowing Signature Bank to avoid those increased regulations.nnnnnOther financial experts point to Signature Bank’s involvement in crypto as a reason the federal government came down so hard on the financial institution. Some industry experts suggest that the Fed wanted to make an example of Signature Bank.