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Signature Bank Board Member Says Shutdown Was Political

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One of the Dodd-Frank Act drafters, Barney Frank, said regulators shut Signature Bank down to send an anti-crypto message.

In shocking revelations, Frank told CNBC that there was “no real objective reason” for the FDIC to seize Signature because the bank was “technically solvent.”

Signature Board Shocked by Shutdown

This statement follows Frank’s comment to Bloomberg on March 13, 2023, after regulators shut the bank down.

“I think that if we’d been allowed to open tomorrow, that we could’ve continued,” said Frank, who sits on Signature Bank’s board.

Much to management’s surprise, regulators shut down the bank after customers moved deposits to bigger Wall Street banks like JPMorgan. The bank’s executives believed they had stabilized the large outflows on March 12, 2023. Notably, Signature had said earlier that they would slash their crypto deposit base by $10 billion.

Additionally, no reports have surfaced regarding alleged insolvency.

The closure of Signature bank seems unwarranted as their HTM unrealised losses aren’t that big compared to its overall asset base.

Some other factors likely at play here. #OperationChokePoint2 pic.twitter.com/vRhUd3jjUX

— Arthur (@Arthur_0x) March 13, 2023

The Federal Deposit Insurance Corporation (FDIC) placed Signature into receivership on Sunday, March 12, 2023.

Soon after that, customer assets were transferred to Signature Bridge Bank NA. Customers could withdraw deposits from the new bank the FDIC is operating.

Nic Carter Claims Signature Bank Shutdown Was a ‘Political Scalp’

Crypto venture capitalist Nic Carter confirmed from independent sources that regulators shut down the bank as a political ploy obscured by the media noise surrounding the ban

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Author: David Thomas

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