The New York regulator recently argued against shutting down Signature Bank because of its relationship with the cryptocurrency industry.
On March 14, the New York Department of Financial Services confirmed that the US government’s shutdown of Signature Bank “has nothing to do with the bank’s relationship with the crypto industry” and is not even a “takeover to combat the situation.” crypto industry”.
The statement states:
“The bank has failed to provide reliable and consistent data, creating a significant crisis of confidence. The decision to take over and hand over to the FDIC is made solely on the basis of the current condition of the bank as well as its safe and sound business ability. The Department will continue to work with federal regulators along with other officials to fully review and investigate the events that took place and hold those responsible accountable.”
As Kyptos reportedNYDFS has ordered the shutdown of the bank specializing in providing services to crypto companies Signature Bank over the weekend and handed it over to the Federal Deposit Insurance Corporation (FDIC) to manage and fully refund. Set of deposits for customers.
This move comes after California officials made a decision closing, seizing assets of the 16th largest bank in the US Silicon Valley Bank and Silvergate Bank announces voluntary liquidation of assets last week. In less than a week, the financial market has witnessed 3 consecutive bank failures causing many concerns.
In a March 14 statement, a spokesperson for NYDFS echoed Director Adrienne Harris’s view that the bank’s closure was not due to the bank’s role with crypto companies or to their service. crypto customer service.
“The decisions made over the weekend have nothing to do with the crypto industry. Signature is a traditional commercial bank with a wide range of operations and customers. DFS has facilitated well-regulated crypto operations over the years.”
Previously, Mr. Barney Frank – a member of Signature Bank’s management board confirmed that his bank was still able to handle at the time of intervention. Despite being massively withdrawn by depositors and businesses with up to 10 billion USD, Frank insisted he had the situation under control. However, New York authorities still got involved, sacking the leadership and organizing the auction of the bank’s assets. Given what happened, Mr. Barney concluded “US authorities are trying to show prestige and send a strong anti-crypto message“. Originally, he told CNBC as follows:
“I think part of what just happened was for the financial authorities to send a strong anti-crypto message. They want to show the public that crypto is harmful. We have become the face of the industry, and there are no signs of bankruptcy based on the current situation.”
Barney Frank is a former American politician and served as Chairman of the Financial Services Committee of the US House of Representatives from 2007 to 2011. He was in charge of drafting the Dodd-Frank Act, which overhauled the entire US financial industry. after the 2008 crisis, as well as giving more supervisory powers to the US financial authorities.
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