US regulators shut down Signature Bank despite ‘no insolvency’: Report

Barney Frank, a former member of america Home of Representatives, has reportedly advised New York regulators closed the crypto-friendly Signature Financial institution as a part of a seeming present of power.

In line with a March 13 CNBC report, Frank — additionally a board member of Signature Financial institution — mentioned the one indication of issues on the financial institution was a deposit run of greater than $10 billion on March 10, which he referred to as “purely contagion” from the Silicon Valley Financial institution fallout. The New York Division of Monetary Companies took management of Signature on March 12 and appointed the U.S. Federal Deposit Insurance coverage Company to deal with the insurance coverage course of.

“I believe a part of what occurred was that regulators wished to ship a really sturdy anti-crypto message,” mentioned Frank. “We turned the poster boy as a result of there was no insolvency based mostly on the basics.”

It is a growing story, and additional data might be added because it turns into out there.