Signature Bank was shut by New York bank regulators because it failed to provide reliable and consistent data, not because of its crypto clients, MariaTVullo, former superintendent at the NYDFS, told CoinDesk TV's 'First Mover.' _franvela reports
by the Federal Reserve, Federal Depository Insurance Corporation and the U.S. Treasury Department said depositors at Signature Bank would be made whole.by current Superintendent Adrienne Harris, Signature Bank did not provide reliable and consistent data, creating a significant crisis of confidence in the bank’s leadership.
“I don't think you close down a bank because of a policy reason, you do because its risk management or its financial picture is unsafe and unsound,” said Vullo, who served as NYDFS superintendent from 2016 to February 2019. She said Signature Bank “may have also suffered the consequences of contagion risks” that were ongoing following the closure of SVB just days earlier.
Nonetheless, the timing by regulators is significant, Vullo said. By quickly dealing with SVB and Signature, bank regulators were able to “send a very strong message to the public that the system is OK and that we're going to take care of depositors,” she said. The latter was important, Vullo said, because it gave depositors a reason “to not pull out their money from other banks.”
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Signature Bank Seizure 'Nothing To Do With Crypto,' New York Says | CoinMarketCapcryptonews: The decision to seize and shutter Signature Bank over the weekend had 'nothing to do' with its activities as a crypto banker. 🤓
Read more »
Tenants of New York’s Worst Landlords Already Knew Signature Bank Would FailThe bank’s model incentivized eviction and neglect. Something had to give.
Read more »
Silicon Valley Bank, Signature Bank executives gave thousands to Democrats and RepublicansBefore going down in history as two of the largest bank failures in the U.S., executives for Silicon Valley Bank of California and Signature Bank of New York were political donors who steered their money toward people who influence financial services laws.
Read more »
Barney Frank Talks More About the Surprise Shuttering of Signature Bank“I was sort of vindicated — they have not argued that we were insolvent.” Here, Barney Frank spoke with jenwieczner about why he blames regulators for unreasonably putting Signature Bank out of business and what he really thinks about banking crypto
Read more »
Why Barney Frank Went to Work for Signature Bank“What’s the matter with you? You really believe that nobody who has regulatory experience should be on a bank board?” IChotiner speaks with the former congressman Barney Frank.
Read more »
Exclusive: U.S. regulator eyes Friday bids for SVB, Signature Bank-sourcesRegulators at the U.S. Federal Deposit Insurance Corp (FDIC) have asked banks interested in acquiring failed lenders Silicon Valley Bank and Signature Bank to submit bids by March 17, people familiar with the matter said on Wednesday.
Read more »