FDIC Quashes Report That Signature Bank Purchaser Must Give Up on Crypto

The Federal Deposit Insurance Corporation (FDIC) has rubbished a Reuters report that interested buyers of crypto-friendly institution Signature Bank would’ve to end their involvement in crypto.

Following the report release, the FDIC spokesperson told the media house that the agency would not include crypto divestment as a requirement for sale, reiterating Chairman Martin Gruenberg’s previous comments that FDIC is not seeking to restrict banks from carrying out any particular activity.

Initial reports that suggested FDIC was pressuring Signature Bank’s purchaser to cease crypto activities seemed to confirm rumors that US regulators targeted the financial institution due to its heavy involvement in the crypto industry. Those reports angered many crypto players, with several making their opinions known.

Barney Frank Vs. New York Department of Financial Services

Last Sunday, ex-congressman and board member of Signature Bank Barney Frank told CNBC that the regulators shut down the bank to send a powerful anti-crypto message.

The New York Financial Services department quickly dismissed Frank’s claim, stating that the decision to put Signature Bank under receivership was mainly based on the institution’s current status and its capability to do business in a sound and safe manner.

Meanwhile, Reuters reports that bidders who will be allowed to review Signature Bank’s financial books before tabling their offers are those with existing banking charters.

FDIC Announces Deadline for Submitting Bids

The FDIC informed interested buyers to submit their bids for Silicon Valley Bank and Signature Bank before Saturday.

This will be the agency’s second attempt to sell Silicon Valley Bank after last Sunday’s failed auction. The FDIC could not find a purchaser willing to buy the entire financial institution last weekend.

Even now, the regulator is aiming for full acquisitions of both banks but would be open to entertaining bids for individual parts in case others are unsuccessful.

Signature Bank’s Shares

Signature bank’s stock (SBNY) began trading on Nasdaq in 2004, and by February 2022, its price had hit $365.69 per share. However, on March 10, Nasdaq announced halting trading of the bank’s stock. At the time, the shares traded for $71.

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