Regulators close crypto-focused Signature Bank, citing systemic risk

[Free Vulcan]

U.S. regulators on Sunday shut down New York-based Signature Bank, a big lender in the crypto industry, in a bid to prevent the spreading banking crisis.

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” Treasury, Federal Reserve, and FDIC said in a joint statement Sunday evening.

The banking regulators said depositors at Signature Bank will have full access to their deposits, a similar move to ensure depositors at the failed Silicon Valley Bank
 will get their money back.

“All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” the regulators said.

https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html

[Gefn]

 

[mountaineer]

Hey, did you know Barney Frank is one of the directors of this bank? Small world.

https://twitter.com/GRDecter/status/1635322707746357254

[mountaineer]

Barney Frank openly admits that Signature was arbitrarily shuttered despite no insolvency because regulators wanted to kill off the last major pro-crypto bank.

Why regulators seized Signature Bank in third-biggest bank failure in U.S. history
Published Mon, Mar 13 2023 11:42 AM EDT  Updated Moments Ago
Hugh Son

Key Points

    * On Friday, Signature Bank customers spooked by the sudden collapse of Silicon Valley Bank withdrew more than $10 billion in deposits, a board member told CNBC.
    * That run on deposits quickly led to the third-largest bank failure in U.S. history. Regulators announced late Sunday that Signature was being taken over to protect its depositors and the stability of the U.S. financial system.
    * “I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” said board member and former congressman Barney Frank.

... The sudden move shocked executives of Signature Bank, a New York-based institution with deep ties to the real estate and legal industries, said board member and former U.S. Rep. Barney Frank. Signature had 40 branches, assets of $110.36 billion and deposits of $88.59 billion at the end of 2022, according to a regulatory filing.

“We had no indication of problems until we got a deposit run late Friday, which was purely contagion from SVB,” Frank told CNBC in a phone interview. ...

For his part, Frank, who helped draft the landmark Dodd-Frank Act after the 2008 financial crisis, said there was “no real objective reason” that Signature had to be seized.

“I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” Frank said. “We became the poster boy because there was no insolvency based on the fundamentals.”  ...

CNBC

[Kamaji]

Barney Frank openly admits that Signature was arbitrarily shuttered despite no insolvency because regulators wanted to kill off the last major pro-crypto bank. CNBC

That's B.S. from Barney Frank trying to minimize his role in allowing Signature to become too overweighted in crypto.  He's a member of the board of directors for Signature.

It has nothing to do with trying to kill off the last major pro-crypto bank.

[catfish1957]

That's B.S. from Barney Frank trying to minimize his role in allowing Signature to become too overweighted in crypto.  He's a member of the board of directors for Signature.

It has nothing to do with trying to kill off the last major pro-crypto bank.

And still the Crypto benchmark BTC was up 15% today.  Nothing to see to here folks.....   move right along.   

[Smokin Joe]

Short any "woke" bank...

[rangerrebew]

March 14, 2023
Barney Frank busts the leftist narrative that Trump did it
By Monica Showalter

The left, acting as it does, has done its level best to blame President Trump for the bank meltdowns now plaguing the U.S.

Some headlines seen on a DuckDuckGo search this morning:

Trump-era banking law paved way for Silicon Valley bank's collapse —Vox

Silicon Valley bank collapse puts new spotlight on Trump banking law —NBC News

Mother Jones, as I noted earlier, also tried to blame Trump.


And according to PolitiFact, Democrats are right there with them, pushing that "narrative" with those talking points:

Some Democrats, including Sen. Elizabeth Warren of Massachusetts and Rep. Katie Porter of California, blame bipartisan legislation signed in 2018 by then-President Donald Trump that eased regulations for all but the largest banks, including institutions like Silicon Valley Bank.


"No one should be mistaken about what unfolded over the past few days in the U.S. banking system," Warren said in an op-ed in The New York Times. "These recent bank failures are the direct result of leaders in Washington weakening the financial rules."

In remarks about the bank failure March 13, President Joe Biden echoed such concerns, saying, "Unfortunately, the last administration rolled back some of these requirements. I'm going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again and to protect American jobs and small businesses."

https://www.americanthinker.com/blog/2023/03/barney_frank_busts_the_leftist_narrative_that_trump_did_it.html