- The management assures that the company had no financial problems.
- The real reasons lie in their ties to the crypto business.
The US crypto industry is losing two of its most important pillars in just a week – Signature and Silvergate banks. They were the key bridge between crypto and fiat systems.
Signature Bank board member Barney Frank voiced CNBC your opinion about this story. He believes regulators had ulterior motives for liquidating the company. The real reason is the desire to “destroy the crypto industry”.
The businessman said that his company had no financial problems. Signature reports also speak of this: at the end of 2022, the company had 40 branches, $110.36 billion in assets and $88.59 billion in client deposits.
“We didn’t have any signs of problems until we ran into a deposit run late Friday night. It was pure infection from SVB.”
Barney Frank explains that amid the panic, customers began to move their savings to larger banks such as Citi and JPMorgan Chase. The management immediately began to explore options for how to protect themselves from risks and raise additional capital. By Sunday evening, the withdrawal of deposits slowed down and the situation stabilized. But it was too late – the FDIC decided to take control of Signature Bank.
The failure of Signature Bank was the third largest banking failure in US history. In official channels, the authorities assure that this is a necessary measure “to protect depositors and the stability of the US financial system.”
