Advertisement
AD

Main navigation

Signature Bank Stock Plummets as Crypto Banking FUD Spreads: Details

Advertisement
Thu, 9/03/2023 - 13:08
Signature Bank Stock Plummets as Crypto Banking FUD Spreads: Details
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

The ongoing Fear, Uncertainty and Doubt (FUD) in the digital currency ecosystem of today is notably impacting Silvergate Bank, one of the two dominant crypto-focused financial institutions. At this time, Signature's stock trading on the floor of the New York Stock Exchange (NYSE) is down by 10.5% to $92.50.

Advertisement

The premarket losses extended the slump that has been recorded throughout the week, and it has gotten a number of industry veterans wondering whether or not an implosion is coming up for the New York-based bank.

The perceived strain emanates from the FUD surrounding Silvergate Bank, which unveiled plans to voluntarily fold up its business. Silvergate's demise has long been rehearsed since the industry started wondering to what extent it has exposure to the bankrupt FTX exchange. The straw that broke the camel's back came when the firm delayed the filing of its financial performance report, citing the need to get its accounting right.

With Silvergate Bank now out of business, there will be a lot of pressure on Signature to see how it can hold the gap in an industry that has been under intense scrutiny from American regulators.

Related

Turning point for signature

While the outlook for Signature Bank with respect to its stock performance is negative, it is not necessarily impacting its liquidity at this time. The strain will be introduced when the ongoing fear spreads and depositors start pulling their funds away from the financial services provider.

Notably, the firm may be unable to guard against these withdrawals, but it will need to be at the forefront of its PR relations and reassure its customers and the public about how viable a business it is.

With how volatile the crypto ecosystem is, it is not uncommon for business partners to deny themselves, and this could be a major turning point for Signature, depending on how it manages the current fallout.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD