Gov. Kathy Hochul set to address national, local banking turmoil

MIDTOWN, Manhattan (PIX11) — Following the collapse of Silicon Valley Bank late last week, depositors will be able to access their funds on Monday, as Gov. Kathy Hochul was set to address the fate of another bank in a briefing at her Manhattan office.

In the second-largest bank failure in the nation’s history, the California-based institution went under on Friday, with federal regulators stepping in to seize its assets. The bank was popular in the tech industry, helping fund startups, venture capitalists, and firms in the sector. Secretary of the Treasury Janet Yellen has said that the federal government will not bail out the bank.

With the Federal Deposit Insurance Corporation insuring deposits up to $250,000, account holders with that amount or less will be able to access their funds starting Monday. However, many clients had far more tied up in the bank.

Meanwhile, regulators from New York State’s Department of Financial Services on Sunday took possession of Signature Bank, saying the move was meant to protect depositors. That marked the third-largest collapse in the nation's history.

“I hope that these actions will provide increased confidence in the stability of our banking system,” said Hochul in a statement on her work with DFS through the weekend. “Many depositors at these banks are small businesses, including those driving the innovation economy, and their success is key to New York's robust economy."

The billions of dollars in assets and deposits in Signature Bank have been transferred to Signature Bridge Bank, a full-service bank operated by the FDIC, while efforts are underway to facilitate a sale.

Hochul is expected to hold a briefing on the matter Monday in Manhattan. President Biden, meanwhile, is expected to address the collapse of Silicon Valley Bank from the White House.