![]() ![]() history-and unfolded days after Silicon Valley Bank became the second-largest. (Signet also faces a class-action lawsuit that alleges that the payment system was used in FTX’s fraudulent co-mingling of customer funds.) Signature’s collapse was the third-largest commercial bank failure in U.S. prosecutors had been investigating Signature’s relationship with crypto clients and potential acts of money laundering before it was seized. Regardless, the New York State Department of Financial Services seized Signature after it “failed to provide reliable and consistent data, creating a significant crisis of confidence in the bank’s leadership,” the governmental agency wrote in a statement.īloomberg reported that U.S. It is not yet clear if the bank actually became insolvent during this crisis. The panic put Signature Bank in the spotlight. Read More: There’s No Easy Explanation For the Banking Mess. ![]() The collapse of SVB caused a panic across banks of similar sizes, with depositors rushing to get their money out before it was too late. Falling DominoesĪt the end of last week, however, Silicon Valley Bank suffered from a swift bank run after many of its tech start-up clients pulled their deposits amid widespread concern about the bank’s cash balance. Venture capital investors and crypto executives, meanwhile, told The Information that they were exploring Silicon Valley Bank as another alternate option. ![]() Following Silvergate’s demise, JPMorgan predicted that some of its customers would migrate over to Signature Bank. But Silvergate was hit hard during crypto’s decline in value last year, and announced on March 9 that it would be winding down operations. Signature’s decision was worrying but not back-breaking for crypto, as the industry could still rely on Silvergate Bank, another crypto-friendly institution. ![]()
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