Home Regulation Reuters report that any bank bidding for Signature “must give up all crypto business”

Reuters report that any bank bidding for Signature “must give up all crypto business”

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The U.S. Federal Deposit Insurance Corporation (FDIC) has begun soliciting bids from failed lenders Silicon Valley Bank and banks interested in buying signatories, but according to Reuters, who would bid on signing? However, it has nothing to do with the virtual currency industry.

“Signature buyers must agree to abandon all crypto business in the bank,” two sources familiar with the bank told Reuters. The source asked to remain anonymous due to the sensitivity of the matter.

The FDIC has refused to make a statement on behalf of the SVB as well as the SVB. Signature and Piper Sandler did not immediately respond to requests for comment.

FDIC Plans to Attempt Second Sale

The FDIC is planning a second sale of both banks on March 17 after failing to find a bidder in the first sale attempt on March 12, according to sources.

If neither bank sells at auction, portions of them may be split and auctioned as separate pieces.

According to Reuters, only bidders in possession of a valid bank charter will be allowed to bid after verifying the bank’s financial records.

However, some say the requirement to sell from cryptocurrencies is not true.

Crypto Claims Refuted

On March 14, a spokesperson cited by Fortune refuted claims made by the New York Department of Financial Services (NYDFS) by the undersigned banks.

But Bernie Frank, a former U.S. representative and signature officer, recently told CNBC that the bank was shut down to “send a strong anti-cryptographic message.”

Following the closure of undersigned banks, the FDIC-led, Biden administration-led emergency plan aims to return all funds to customers large and small, not just those with insurance.

The bank closures will cause several companies to look for new banking providers, including Coinbase and other crypto companies that had their funds stored in banks.

About 30% of Signature deposits are estimated to come from cryptocurrency companies. The bank closure follows the failure of Silicon Valley Bank on March 10 and the decision to suspend all operations at Silvergate Bank on March 8.

Meanwhile, there is growing sentiment within the cryptocurrency community to adopt a more bullish stance on the acquisition of traditional financial institutions such as banks.

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