New York state regulators on Sunday shut down Signature Bank, a big lender in the crypto industry, in a bid to prevent the spreading banking crisis.
“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said in a joint statement Sunday evening.
The banking regulators said depositors at Signature Bank will have full access to their deposits, a move similar to that which was made to ensure depositors at the failed Silicon Valley Bank will get their money back.
Crypto shows gains from the red they were posting early morning:
It’s nice to see that the Fed acted fairly promptly and decisively to head off a big collapse. Surprising to me.
Now, it appears we need more bank regulation to avoid this particular screwup from happening again. Limits on borrowing short and lending long for sure.
Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.
I am dying to know more about which VCs manipulated their favorite, worthless, alt-coins and tokens. These guys had to almost have heart attacks since last week.
Stablecoins are no longer down in that 80-90% parity region, but more like 98% and 99% of parity with the $USD now. So that should rope some of these yammering VCs from doing something stupid - LIKE GOING ON CNBC AND SAYING WE ARE GOING TO HAVE BANK RUNS ALL OVER THE COUNTRY!
That SOUNDS unhelpful, but it’s people with money who can make a bank run into a problem… and I’d like to think smart money won’t be fooled by the talking heads.
Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.
Cramer’s VC buddies are the ones who fanned the flames that the world would end today for America. The more I listened to the VC’s hyperventilate this weekend, the more I enjoyed Chanos, Cohodes, and other famed shorts who just told them to quit acting like trust fund kids and sociopaths. Quite funny: Cohodes was calling for prison terms for some of the stuff he saw in the financials of $SI and the $SIVB. The poor VCs on the podcasts were of course claiming they are doing God’s work and that without them, America would no longer be a leading edge research and developer of high tech.
Right.
And I’ve got a bridge in Bakhmut I will sell the VCs right now.
Probably due. Especially for the largish stock sales by officers of the bank immediately before they swirled down the tubes… assuming those were not long term planned sales, which I doubt.
Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.
Signature Bank was being examined for its work with crypto clients, according to Bloomberg.
Justice Department investigators in Washington and Manhattan were examining whether the New York bank took sufficient steps to detect potential money laundering, such as monitoring transactions for signs of criminality.
The Securities and Exchange Commission was also looking into it, according to people familiar with the situation.
