Federal Deposit Insurance Corporation regulators (FDIC) have apparently imposed a significant requirement for all potential buyers of Signature Bank, a failed lender.
Reuters reports that all banks interested in acquiring Signature Bank will have to agree to give up all of the company’s businesses that are related to crypto.
“Any buyer of Signature must agree to give up all the crypto business at the bank, the two sources added.”
According to the report, interested buyers will have until March 17th for their bids.
Regulators placed Signature into receivership over concerns that the firm cannot continue to do safe and sound business after customers pulled out approximately $17.8 billion on Friday, or 20% of the bank’s deposits.
Signature Bank is a very popular cryptocurrency-friendly bank. Nearly 25% of its deposits came from digital assets by September’s end.
Barney Frank (a former Democratic congressman representing Massachusetts) claims that regulators seize the bank in order to send an anticrypto message.
The New York Department of Financial Services (NYDFS), which took possession of Signature on Sunday, denies the allegation saying the closure is not because of crypto but due to a crisis of confidence in the bank’s leadership.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check out the Price Action
Follow us on TwitterTelegram, Facebook and Facebook
Surf The Daily Hodl Mix
Midjourney, Generated Image