Signature Bank regulator says it was closed for not providing data: Report

The New York Department of Financial Services (NYDFS) unopen down Signature Bank for “failing to supply accordant and reliable data” and not due to the fact that of a bias against crypto, according to a March 14 report from the International Business Times. Signature Bank Board Member Barney Frank had previously accused the regulatory bureau of shutting it down simply to “send a precise beardown anti-crypto message.”

According to the report, an NYDFS spokesperson said that the shutdown had “nothing to bash with crypto.” Instead, determination was “a important situation of assurance successful the bank's leadership.” The regulator was witnessing a deluge of withdrawals from the slope implicit the weekend, and erstwhile it attempted to get accusation from the bank’s leadership, they failed to supply “reliable and accordant data,” the study said successful a paraphrase of the regulator’s statement.

The study seemed to connote that Barney Frank was lasting by his archetypal claim. It quoted him arsenic saying successful response: “I deliberation that was a factor. I'm puzzled arsenic to wherefore it was closed,” and it stated that Frank claimed “bank executives were moving to supply information to regulators” but could not execute this task earlier it was closed down.

New York Banking Law Section 606 authorizes the NYDFS to instrumentality implicit a slope for a assortment of reasons, including if the slope “Has refused, upon due demand, to taxable its records and affairs for inspection to an examiner of the department” oregon “Is successful an unsound oregon unsafe information to transact its business.”

The NY DFS seized #SignatureBank nether Section 606 of the New York Banking Law. Here's the database of reasons justifying seizure. They are beauteous wide-ranging. https://t.co/xY7TQVsltd. pic.twitter.com/zG5xv5FUFA

Signature Bank was closed down connected March 12. Its shuttering was portion of a question of slope closures that had started the erstwhile week and that included Silvergate Capital and Silicon Valley Bank. Numerous crypto-related businesses had funds deposited astatine Signature, including Coinbase, Celsius, and Paxos. Crypto speech Gemini had antecedently partnered with Signature, but it stated connected March 13 that it did not person immoderate funds astatine the slope astatine the infinitesimal it was unopen down.