Suspected Regulatory Intent Behind Signature Bank Collapse: Former US Rep Barney Frank Speaks Out – Bitcoin News


Barney Frank, a former member of the U.S. House of Representatives from Massachusetts and the leading co-sponsor of the 2010 Dodd-Frank Act, discussed his thoughts on the recent failure of Signature Bank. In an interview, Frank suggested that regulators may have been trying to send a “strong anti-crypto message” by shutting down the financial institution.

The Third-Largest Bank Failure in U.S. History: Executives Surprised by Signature Bank’s Demise

New York regulators from the Department of Financial Services (DFS) declared on Sunday evening that Signature Bank (SBNY) was shut down and the Federal Deposit Insurance Corporation (FDIC) took over as the bank’s receiver. The seizure was intended to “protect depositors,” said DFS superintendent Adrienne Harris. Unlike Silvergate Bank and Silicon Valley Bank (SVB), Signature’s failure was somewhat confusing to some market observers, making it the third-largest bank failure in the United States.

On Sunday evening, Harris said that Signature had around $110.36 billion in assets and total deposits of approximately $88.59 billion as of December 31, 2022. Barney Frank, a Signature board member and former U.S. representative from Massachusetts, noted that the bank’s collapse was unexpected to its executives. In a phone call interview with CNBC, Frank stated, “We had no indication of problems until we experienced a deposit run late Friday, which was solely due to contagion from SVB.”

Frank mentioned that withdrawals slowed on Sunday, and Signature executives believed the situation was resolved. Additionally, he alleged that the bank’s senior staff sought out “all avenues” to deal with the liquidity issues. Frank was a co-sponsor of the 2010 Dodd-Frank Act, which changed the U.S. banking and financial regulatory system. However, the policy framework has been partially repealed, and some U.S. banks are exempt from the Dodd-Frank ruleset.

“I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” Frank proposed. “We became the poster boy because there was no insolvency based on the fundamentals.”

Tags in this story
anti-crypto, Bank Failure, banking reform, banking regulations, Barney Frank, board member, CitiGroup, cnbc, contagion, Department of Financial Services, deposit run, depositors, DFS, Dodd-Frank Act, FDIC, Federal Deposit Insurance Corporation, Financial Crisis, financial industry, Financial Institutions, Financial News, financial regulatory system, financial stability, Insolvency, jpmorgan, liquidity problems, market observers, Massachusetts, New York regulators, policy framework, Regulatory Compliance, senior staff, Signature Bank, Silicon Valley Bank, Silvergate Bank, U.S. banking, U.S. House of Representatives

What do you think about Barney Frank’s suspicion that regulators wanted to send an anti-crypto message by shutting down Signature Bank? Do you believe this is a fair assessment or is there more to the story? Share your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Related articles

Recent articles