The US FDIC is establishing a bridge bank to facilitate signature bank closures

The US Federal Deposit Insurance Corporation announced Sunday that it has set up a bridge bank to service customer accounts at the recently closed Signature Bank.

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The FDIC said the new government-run entity will ensure accounts continue to function uninterrupted while the regulator looks for a buyer for the closed bank’s assets. Signature Bank was shut down earlier in the day as part of the aftermath of the banking turmoil sparked by Friday’s abrupt shutdown of Silicon Valley Bank.