Signature bank purchase deadline set, but buyers must ditch crypto
Sources have said that those who buy Signature Bank will have to drop the latter’s crypto business, according to Reuters. The deadline for bids is March 17.
Reuters reports are emerging that people close to the matter regarding the bids for Signature Bank and Silicon Valley Bank may submit bids by March 17.
The sources said the regulators asked those interested in buying the banks to submit bids by that deadline.
Perhaps most interestingly, those who buy the banks must “give up all crypto business” at Signature. US authorities have expressed their displeasure with the effects of crypto businesses on banks, citing systemic risk.
The US Federal Deposit Insurance Corp has made a strong effort to see that the banking situation is resolved. It tried to get SVB sold on Sunday, but failed. It is now trying to have both of these failed banks sold quickly – partial sales of the banks could be approved if a full sale does not take place.
The sources also said the aim is to give traditional lenders advantages over private equity firms. The authorities facilitate this by limiting access to the banks’ finances to only bidders with existing bank charters. As a result, these bidders can study the economics before submitting their bid.
Signature Bank is facing criminal proceedings
Signature Bank is facing a criminal investigation by Justice Department investigators in Washington and Manhattan. They are investigating whether the bank “took adequate steps to detect potential client money laundering,” according to recent reports. According to the outlet’s sources, the United States Securities and Exchange Commission is also investigating the bank.
The specific actions under the scanner include “scrutinizing people opening accounts and monitoring transactions for signs of criminality.” In any case, it is a worrying development for the bank. This comes after several notable events have occurred in recent days.
Banks under supervision
Among the developments regarding Signature, a report emerged last month that the bank knew about FTX’s trading since June 2020. On a general level, analysts wonder if there is a crackdown on crypto-friendly banks.
A board member of the bank claimed that the closure was politically motivated. Meanwhile, New York regulators claimed that Signature Bank’s closure was unrelated to its involvement in the cryptocurrency sector.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
