Colombo (News 1st) - Financial authorities of the state of New York have taken over New York-based Signature Bank, just two days after a similar takeover of Silicon Valley Bank in California.
Signature Bank was handed over to the Federal Deposit Insurance Corporation (FDIC), which protects the funds of depositors.
Both takeovers are viewed as pre-emptive actions by government officials to prevent a possible collapse of either bank.
The U.S. federal government has said that it will not be providing financial bailouts to the two banks. Instead, depositors' funds would be paid back by the FDIC, which is a nationwide federal organization that is funded by the banking system itself.