Home CryptocurrencyAltcoin Signature Bank regulator says it was closed for failure to provide data: Report

Signature Bank regulator says it was closed for failure to provide data: Report

by SuperiorInvest

The New York Department of Financial Services (NYDFS) shut down Signature Bank for “failure to provide consistent and reliable data,” not for bias against cryptocurrencies, according to a report dated May 14. message from the International Business Times. Bank board member Barney Frank had the signature previously accused the regulatory agency shuts it down only to “send a very strong anti-crypto message”.

According to the report, a NYDFS spokesperson said the shutdown had “nothing to do with cryptocurrencies.” Instead, there was a “significant crisis of confidence in the bank’s management”. The regulator witnessed a flood of withdrawals from the bank over the weekend and when it tried to get information from the bank’s management, it did not provide “reliable and consistent data”, the report said, paraphrasing the regulator’s statement.

The report seemed to indicate that Barney Frank stood by his original claim. It quoted him as saying, “I think that was a factor. I’m confused why it was closed,” and it said Frank claimed that “bank executives were working to provide data to regulators” but could not complete that task until it was closed.

Section 606 of the New York Banking Law authorizes NYDFS to take over a bank for various reasons, including when the bank “refused upon proper request to submit its records and affairs for inspection by the examining division” or “is in an unsound or unsafe condition to conduct its business.”

The signature bank was closed 12th March. Its shuttering was part of a wave of bank closings that began last week that included Silvergate Capital and Silicon Valley Bank. Many trades related to cryptocurrencies had deposited funds at Signature, including Coinbase, Celsia and Paxos. Crypto exchange Gemini has previously partnered with Signature, but on March 13 said it had he had no funds in the bank at the time it was closed.

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