Signature Bank Closure Not Due To Crypto Link: New York Officials

Signature Financial institution Information: After former member of the U.S. Home of Representatives Barney Frank stated Signature Financial institution was focused resulting from its hyperlinks with the crypto market, there’s a counter argument to it. On Monday, Frank stated a part of the rationale behind seizure of the financial institution was meant by regulators as a really robust anti-crypto message. The financial institution was shut down in what was the third largest financial institution failure within the historical past of the US. This got here instantly after the sudden collapse of the Silicon Valley Financial institution.

Additionally Learn: Silicon Valley Financial institution Now Underneath Investigation By U.S. SEC & Division Of Justice

Frank stated regulators held a hidden agenda towards crypto associated banks and that the Signature Financial institution closure didn’t have any compelling purpose to justify. The failure of Silicon Valley Financial institution and Signature Financial institution led to huge unload within the US banking shares, to the extent of forcing a halt in financial institution shares for buying and selling.

Disaster Confidence

As per the most recent Bloomberg report, the New York State Division of Monetary Companies (NYSDFS) shut down Signature Financial institution over the weekend after a disaster of confidence in administration. The report quoted New York officers as saying,

“The financial institution failed to supply dependable and constant knowledge, making a disaster of confidence within the financial institution’s management. The choice to take possession of the financial institution and hand it over to the FDIC was based mostly on the present standing of the financial institution and its capacity to do enterprise in a protected and sound method on Monday.”


On the opposite aspect, JP Morgan warned buyers to be cautious in direction of US and European equities after the Silicon Valley Financial institution collapse. In the meantime, the crypto market is on a bullish momentum with Bitcoin value breaching the important thing $26,000 milestone since June 2022.

Additionally Learn: Circle Accessed USDC Reserves In SVB Account, CEO Confirms

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