The financial regulators from New York defend their decision from the crypto community to close Signature Bank by saying it has “nothing to do with crypto” making a feeble attempt to justify an erroneous action.
Instead, the regulators cited “a significant crisis of confidence in the bank’s leadership” as a reason behind the shutdown of Signature Bank.
The comment from the New York State Department of Financial Services spokesperson is the response to an argument by Signature Bank board member and former U.S. Rep. Barney Frank over the bank’s closing.
In an interview, Frank said, “I think part of what happened was that regulators wanted to send a very strong anti-crypto message.” The disappointment of regulators for the crypto is not hidden from anyone now.
However, NYDFS is continuously throwing groundless arguments about the bank’s weak position and failure to handle business in a safe and sound manner on Monday.
Also Read: EU Proposes Banks to Keep 1,250% Risk Weight on Crypto Assets
The spokesperson stated that “The decisions made over the weekend had nothing to do with crypto. Signature was a traditional commercial bank with a wide range of activities and customers.”
“DFS has been facilitating well-regulated crypto activities for several years, and is a national model for regulating the space,” they added.
Surprisingly, no concrete evidence has been represented about its weak position in the bank. Even bank executives were working to handover data to regulators, according to Frank.
“What we heard from our executives is that the deposit situation had stabilised and they would be getting the capital from the discount window and I continue to be convinced that if we had opened on Monday given the announcements of those two policies, we would have been in a reasonably good shape and certainly functional,” Frank said.
Signature overwhelmingly involved in the crypto related operations. Over a quarter of its deposits accumulated through crypto space, had plans to shrink its crypto-related deposits by $8 billion.
