Which of the following statements is true about Signature Bank?

Question

1. It had exposed itself to highly volatile cryptocurrencies.
2. It had invested extensively in a portfolio of U.S. Treasuries and mortgage bonds.
3. It had a geographically and sectorally concentrated depositor base.

(a) 1 only

(b) 2 only

(c) 3 only

(d) 1 and 3 only

Answer 1

Answer: (a) 1 only

 Signature Bank had exposed itself to highly volatile cryptocurrencies by providing services to those investing in digital assets, and a run on these assets led to a large number of deposit withdrawals, which in turn led to the bank's failure.