Barney Frank said: I think part of what happened was that regulators wanted to send a very strong anti-crypto message
He is a board member and Former congressman.
His full comment: “I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” said board member and former congressman Barney Frank, who helped draft the landmark Dodd-Frank Act after the 2008 financial crisis.
Frank was a co-author of the “Dodd-Frank Act”, a reform package intended to protect consumers from the predatory lending practices that sparked the 2008 financial crisis. According to the Fed, a full bailout for depositors to both SVB and Signature was necessary to protect the stability of the financial system.
Signature Bank was closed over the weekend by state authorities.
The Fed said:
We are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.
After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.
Read more: https://unusualwhales.com/news/signature-bank-sbny-has-been-closed-by-state-authorities
