Signature Bank, which was closed by US regulators two days after the collapse of Silicon Valley Bank (SVB) – the third-largest bank failure in US history – was established by an Israeli bank, Globes reported on Monday.

Signature Bank was established by Israel’s Bank Hapoalim in 2000 as part of its strategy to expand its private banking business overseas.

Bank Hapoalim suffered initial losses in founding the bank but reported a $30 million profit in 2004. It then began reducing its holdings, eventually selling all its stakes in 2005 for about $500 million.

Since Friday, Israeli media channels are reporting on a number of high-tech companies that transferred their funds from Israeli banks to SVB due to their opposition to the Netanyahu government’s judicial reform plan.

In addition, Kikar H’Shabbat reported that a number of known baalei tzedaka who have donated tens of millions of dollars to the Olam HaTorah had funds in SVB.

(YWN Israel Desk – Jerusalem)