• Sat. Apr 1st, 2023

Signature Bank’s Prospective Purchasers Ought to Agree to Give Up All Crypto Business: Reuters


Mar 17, 2023

UPDATE (March 17, 2023, 00:ten UTC): The FDIC denied Reuters’ reporting on Thursday. Click ideal right here for more.

Reuters 1st reported the improvement on Wednesday evening, citing people familiar with the matter. The Federal Deposit Insurance coverage coverage Corp. stated bids for the bank need to be submitted by Friday, the report stated.

The New York-mainly primarily based bank’s weekend closure came two days promptly just after the collapse of an more bank, California-mainly primarily based Silicon Valley Bank, and drastically significantly less than a week promptly just after the voluntary closure of an more California-mainly primarily based bank, Silvergate Bank. All three of the now-defunct banks had been regarded crypto-friendly monetary institutions.

A class-action lawsuit was filed against Signature Bank in February, alleging the bank knew about – and facilitated – the “now infamous FTX fraud.” Specifically, the suit accuses Signature Bank of getting know-how of and permitting “the commingling of [the FTX exchange’s] client funds inside its proprietary, blockchain-mainly primarily based payments network, Signet.”

Barney Frank, a Signature Bank board member and former Democratic U.S. congressman who co-authored the Dodd-Frank Act, also advised the takeover was spurred by an anti-crypto motive, telling CNBC that Signature Bank was solvent – and that regulators intervened anyway to send a message.

“I contemplate element of what occurred was that regulators wanted to send a definitely highly effective anti-crypto message,” Frank told CNBC.

On the other hand, the New York Division of Monetary Options has denied that crypto had one thing to do with its choice to shutter Signature Bank, as an option saying that was due to a “crisis of confidence” in the bank’s leadership.

The FDIC did not promptly return a request for comment.

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