Signature Bank SBNY.Odropped 22%, while San Francisco-based First Republic Bank FRC.N fell about 15%. The state regulator appointed the Federal Deposit Insurance Corp (FDIC) to dispose of SVB's assets in an episode that spilled over into other U.S. and European banks and sparked fears about hidden risks in the sector. SVB's crisis comes as the U.S. Federal Reserve, locked in a battle against inflation, is raising interest rates and ending an era of cheap money, exposing vulnerabilities in the market.