According to the latest, Signature Bank It withdrew more than $10 billion in deposits Friday after customers were alarmed by the sudden bankruptcy of Silicon Valley Bank. As a result, the influx of deposits quickly led to the bankruptcy of the third largest bank in US history. Regulators announced late Sunday that they had appointed trustees to the bank to protect depositors and the larger US banking system.
Is Signature Bank Targeted?
Board member and former member of the U.S. House of Representatives Barney FrankAccording to , the unexpected action surprised bank officials. The New York-based bank, which has extensive contracts in the cryptocurrency, real estate and legal industries, is spread across 40 locations with assets of $110.36 billion and deposits of $88.59 billion by the end of 2022.
Frank made exceptional claims about the firm’s solvency, claiming that regulators took a targeted approach to show that “cryptoassets are toxic.”
“I think part of what happened was that regulators wanted to send a very strong anti-crypto message. We became the poster child because there was no fundamental bankruptcy.”
NEWS CONTINUES BELOW
Frank argued that regulators are trying to shut themselves down without good or compelling reasons. According to him, the regulatory actions of the US banks cryptocurrency It looked like they had a hidden agenda to show that they shouldn’t be dealing with anything related to their unit. Although Frank appreciated the government’s move to create an “emergency safety net for uninsured deposits,” he argued that Signature Bank would have performed better if government agencies had taken action sooner.
On Saturday, Signature’s executives looked at all the possibilities to help strengthen the company’s position, such as finding additional resources and determining the level of interest shown by potential buyers. According to Frank, deposit outflow slowed on Sunday and management believed they had stabilized the situation at that point.
However, the bank was abruptly closed on the same day after top executives were dismissed without explanation. The bank’s sales process is currently overseen by regulatory authorities, and customers are assured that their savings will be accessible and service will continue uninterrupted.
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