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

Signature Bank News: After former member of the U.S. House of Representatives Barney Frank said Signature Bank was targeted due to its links with the crypto market, there is a counter argument to it. On Monday, Frank said part of the reason behind seizure of the bank was meant by regulators as a very strong anti-crypto message. The bank was shut down in what was the third largest bank failure in the history of the United States. This came immediately after the sudden collapse of the Silicon Valley Bank.

Also Read: Silicon Valley Bank Now Under Investigation By U.S. SEC & Department Of Justice

Frank said regulators held a hidden agenda against crypto related banks and that the Signature Bank closure did not have any compelling reason to justify. The failure of Silicon Valley Bank and Signature Bank led to massive sell off in the US banking stocks, to the extent of forcing a halt in bank stocks for trading.

Crisis Confidence

As per the latest Bloomberg report, the New York State Department of Financial Services (NYSDFS) shut down Signature Bank over the weekend after a crisis of confidence in management. The report quoted New York officials as saying,

“The bank failed to provide reliable and consistent data, creating a crisis of confidence in the bank’s leadership. The decision to take possession of the bank and hand it over to the FDIC was based on the current status of the bank and its ability to do business in a safe and sound manner on Monday.”

On the other side, JP Morgan warned investors to be cautious towards US and European equities after the Silicon Valley Bank collapse. Meanwhile, the crypto market is on a bullish momentum with Bitcoin price breaching the key $26,000 milestone since June 2022. In the last 24 hours, the global crypto market value went up by about 6%.

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