Taking to Twitter on March 17, investor and famend short-seller Invoice Ackman stated Financial institution of America has plans to step in and purchase distressed U.S. Signature Financial institution, one of many banks that went into pressured receivership after a disaster within the U.S. banking sector final week.
Again of America to Signature’s rescue?
I’m listening to that @BankofAmerica goes to purchase Signature Financial institution on Monday. Except and till we are able to shield uninsured deposits, the price of capital goes to rise for smaller banks pushing them to merge or be acquired by the SIBs. I don’t suppose that is good for America.
— Invoice Ackman (@BillAckman) March 17, 2023
On March 15, Reuters reported that the FDIC advised potential bidders of Signature they have to “surrender” crypto features of the enterprise.
Nonetheless, a CoinDesk report from March 17 denied that to be true.
On March 17, Ackman proclaimed that Signature will quickly discover itself within the arms of Financial institution of America, one of many world’s main monetary establishments, price an estimated $222 billion.
In response to earlier stories written by Barney Frank, a board member of Signature Financial institution and a co-sponsor of the Dodd-Frank Act throughout his tenure in Congress, the regulator’s actions might have been politically motivated by anti-crypto sentiment.
Nonetheless, a spokesperson from each the New York Regulator and FDIC extra lately said that the regulator’s lack of confidence in Signature financial institution’s management stemmed from a latest financial institution run and the shortage of “dependable” data, not any particular connection to crypto.
Neither Financial institution of America. nor Signature have responded to Ackman’s tweet.