Gov. Hochul Reassures New Yorkers: “Your Money is Secure and Protected”

By Yehudit Garmaise

“New York regional banks are open,” Gov. Kathy Hochul said this morning. “Everything is fine. Calm."

“New Yorkers should have confidence that their money is secure, and wherever they have chosen to bank: their money is protected.

To ensure that all Signature Bank customers can withdraw all of their savings, the Federal Deposit Insurance Corporation (FDIC) “is simply using fees that the FDIC assessed on all banks for such a time that we would need them,” Gov. Hochul explained. “So, the money is there.”

Last night, the New York State Department of Financial Services (DFS) took possession of Signature Bank, which the DFS then turned over to the FDIC, which ensures that depositors do not lose their funds when banks run out of money.

New York’s DFS quickly appointed the FDIC as the receiver of Signature Bank, explained New York’s DFS Superintendent Adrienne A. Harris, “to ensure the depositors are protected: so that their money would be there, so businesses could open today as usual, and that is what is happening today at the bank.”

Although the turn of events sounds shocking, the governor said, Signature Bank’s transition into the hands of the FDIC is simply, “a change of management.” 

“We want to make sure the entire banking community here in New York is stable, and that we can project calm,” the governor reassured.

To protect the deposits of all Americans, over the weekend, the Federal Reserve and the FDIC “invoked protections,” the governor said, “to ensure that all deposits: even those above the $250,000 limit that is within the law of FDIC protections, would be protected.”

While projecting calm and stability, Gov. Hochul warned against the uncertainty that might lead New Yorkers to withdraw their funds from regional banks.

Consumers and entrepreneurs should keep their funds where they are currently deposited, she said.

Mass withdrawals from banks in New York “would create incredible instability in the banking community” and “would have large ripple effects throughout the economy.

“Despite the jitters over the weekend: the banks are open, New Yorkers’ assets are protected, and the deposits are protected.” 

photo credit: Flickr