Gov. Kathy Hochul says New York banks remain safe despite Signature collapse

Gov. Kathy Hochul on Monday said the New York banking system remained on solid ground despite the failure of Signature Bank this weekend.

“The main message I want to deliver is New Yorkers should have confidence that their money is secure,” Hochul told reporters in Manhattan.

“Wherever they’ve chosen to bank, that is protected,” she said.

State regulators shut down Signature on Sunday, which had total deposits of $82.6 billion, amid worries that its collapse, which closely followed the fall of California-based Silicon Valley Bank, could lead to a national financial meltdown.

A fund supported by banks will cover all deposits in the two failed banks as part of efforts to limit the financial storm, according to the Federal Deposit Insurance Corporation

Hochul downplayed the remaining risk to the state financial system and economy Monday.

“We don’t have any evidence that anyone else is in a situation like Signature at this moment,” she said.

Kathy Hochul
Gov. Kathy Hochul said Monday the state banking system remains in good condition despite the collapse of Signature Banks over the weekend.
Bloomberg via Getty Images

Her comments came shortly after President Biden addressed the crisis, using similar terms.

“Thanks to the quick action of my administration over the last few days, Americans can have confidence that the banking system is safe,” Biden insisted. “Your deposits will be there when you need them.”

Biden’s remarks seemed aimed at broader fallout and ripple effects through the stock market and potentially other lenders.