Signature Bank, a New York-based financial institution, was recently taken over by regulators in what has become the third-largest bank failure in U.S. history. The bank had been struggling for some time due to its investments in cryptocurrency and a run on deposits, but many are now pointing to another reason for its collapse: the decision to close President Trump’s accounts following the January 6th riot in 2021.
The move came as a surprise to many, as Signature Bank had long been one of Trump’s most loyal supporters. It had been one of his biggest lenders during his 2016 presidential campaign and continued to provide him with banking services until the fateful day when it decided to cut ties with him following the Capitol Hill riots.
The decision sparked outrage among Trump’s supporters and led to calls for boycotts of Signature Bank and other institutions that had similarly cut ties with the former president. But while these boycotts may have played a role in Signature Bank’s demise, experts believe that it was more likely due to its risky investments in cryptocurrency and an overall lack of liquidity that ultimately caused its downfall.
Regardless of the cause, however, there is no denying that Signature Bank’s closure is yet another example of how quickly things can change in today’s volatile financial markets. It serves as a reminder that even seemingly secure institutions can fail if they don’t take proper precautions or make wise investment decisions.
It also serves as a warning for other banks who may be considering cutting ties with President Trump or any other controversial figure: do so at your own risk. As we have seen with Signature Bank, such decisions can have serious consequences and should not be taken lightly.