The March 12 closing of Signature Bank sent shock waves across Broadway, as did several productions affiliated with the New York-based institution. The US Federal Deposit Insurance Corporation (FDIC) moved deposits to a temporary bank, but several Broadway businesses are reportedly looking for a more permanent solution.
The 21-year-old Signature Bank was the preferred bank for many Broadway shows and the businesses that support them, serving half of Broadway productions. Broadway News. Because shows operate as individual businesses that transmit money back to investors, banking for Broadway is different than in other industries, with specific requirements Signature was able to meet. Signature reportedly hired a team dedicated to Broadway.
The bank shutdown followed a week of uncertainty for medium-sized banks. After Silvergate Capital declared bankruptcy and Silicon Valley Bank was seized by the government, many customers switched their funds from Signature. signed on 10 March lost 20 percent According to Bloomberg, its deposits. State regulators took control of the bank, which had $110 billion in assets and $88.6 billion in deposits until DecemberAfter losing confidence in its leadership, represents the third largest bank failure in US history.
Broadway needs a new bank
Broadway Shows earned a total of $845 million During the 2021-22 season, a significant portion flowed through the signings. Only bank deposits up to $250,000 are insured by the FDIC, which could amount to millions lost for each show. Had the government not taken steps to ensure all deposits were fully recovered, the employees would not have been paid and the show could have been shelved.
The government moved Signature’s customers’ money to a temporary bank called Signature Bridge Bank, but account holders will need to find a different long-term solution. That’s good news for City National Bank, which has picked up some business, according to Broadway News.
Owned by the Royal Bank of Canada, provides Citi National services the other half A trusted institution of Broadway productions and among the Broadway community. It also has a special team working in the theater industry and has sponsored the Tony Awards since 2014.
