Cryptocurrency: BANK RUN PANIC Spreads Around Globe, Crypto and Gold Demand Skyrockets, FDIC Coverup

grarpamp grarpamp at gmail.com
Sun Mar 19 22:06:13 PDT 2023


FDIC Demands Signature Bank Buyers Stop All Crypto Business: Report

Authored by Helen Partz via CoinTelegraph.com,

The FDIC regulators have reportedly required any buyer of Signature to
agree to give up all cryptocurrency business at the bank...

The United States Federal Deposit Insurance Corporation (FDIC) has
reportedly asked potential rescuers of some failed U.S. banks not to
support any crypto services.

The FDIC regulators have asked banks interested in acquiring failed
U.S. lenders like Silicon Valley Bank (SVB) and Signature Bank to
submit bids by March 17, Reuters reported.

The authority will only accept bids from banks with an existing bank
charter, prioritizing traditional lenders over private equity firms,
the report notes, citing two sources familiar with the matter. The
FDIC aims to sell entire businesses of both SVB and Signature, while
offers for parts of the banks could be considered if the whole company
sales do not happen.

The FDIC has also required any buyer of Signature to agree to give up
all cryptocurrency business at the bank.

New York-based Signature is a major crypto-friendly bank in the United
States. The bank is known for many partnerships in the crypto
industry, servicing companies like Coinbase exchange, stablecoin
issuer Paxos Trust, crypto custodian BitGo, and bankrupt crypto lender
Celsius — among others.

The news comes amid U.S. Representative Tom Emmer sending a letter to
the FDIC, expressing concerns that the federal government is
“weaponizing” issues around the banking industry to go after crypto.

“These actions to weaponize recent instability in the banking sector,
catalyzed by catastrophic government spending and unprecedented
interest rate hikes, are deeply inappropriate and could lead to
broader financial instability,” Emmer said in the letter to FDIC
chairman Martin Gruenberg.

    Today, I sent a letter to FDIC Chairman Gruenberg regarding
reports that the FDIC is weaponizing recent instability in the banking
sector to purge legal crypto activity from the U.S. 👇
pic.twitter.com/fDmaA0XGWv
    — Tom Emmer (@GOPMajorityWhip) March 15, 2023

The New York State Department of Financial Services officially closed
down and took over Signature on March 12, appointing the FDIC as the
receiver. To protect depositors, the FDIC transferred all the deposits
and most of the assets of Signature Bank to Signature Bridge Bank, a
full-service bank that will be operated by the FDIC as it markets the
institution to potential bidders.

According to Barney Frank, a former member of the U.S. House of
Representatives, New York regulators closed Signature Bank despite no
insolvency.

Frank speculated that the action was to demonstrate force over the
crypto industry, being a “very strong anti-crypto message.” However,
the FDIC in January said that it didn’t prohibit or discourage banking
organizations from providing banking services to customers of “any
specific class or type, as permitted by law or regulation.”

Later reports suggested that Signature CEO Joseph DePaolo and chief
financial officer Stephen Wyremski allegedly committed fraud by
falsely claiming the bank was “financially strong” just three days
before it was shut down. The bank has also reportedly been
investigated for alleged money laundering.


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