NY bank's demise: Contagion or a problem with the business?

Signature Bank's collapse came stunningly fast, leaving behind the question of whether there was a fundamental flaw in the way it did business — or if it was just a victim of the panic that spread after the failure of Silicon Valley Bank. 

There were few outward signs that Signature Bank was crumbling before the New York Department of Financial Services on Sunday seized the bank’s assets and asked the Federal Deposit Insurance Corp. take over its operations. The FDIC will run it as Signature Bridge Bank until it can be sold. 

But leading up the the takeover, there were calls on social media warning depositors to get their funds out of the bank — and those were followed with a real-life frenzy of withdrawals. There hasn't yet been a public accounting of exactly how much money was withdrawn from the bank with a history of being friendlier than most in the U.S. to the cryptocurrency industry. 

“This is not about a particular sector in the case of Signature Bank," Adrienne Harris, superintendent of the Department of Financial Services, said at a media briefing this week. “But we moved quickly to make sure depositors were protected.”