Signature Bank seized to send banks a message, director says
By GEOFF MULVIHILL
Associated Press
A regulatory takeover of a New York-based bank was intended to send a message to banks to stay away from the cryptocurrency business. That’s according to a former member of Congress who was on the bank’s board. Former U.S. Rep. Barney Frank says Signature Bank had a high volume of withdrawals but had the situation stabilized by the time New York regulators stepped in on Sunday. They shut down the bank and give temporary control to an arm of the federal government. The bank was taken over just two days after California-based Silicon Valley Bank met the same fate. Both Frank and New York officials said that “contagion” from the Silicon Valley Bank was a factor.
