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.
Source: https://beincrypto.com/signature-bank-board-member-says-shutdown-political/