Regulators at the Federal Deposit Insurance Corporation (FDIC) are reportedly imposing a notable requirement for all interested buyers of failed lender Signature Bank.
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.”
The report says that interested buyers have until March 17th to submit 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 popular crypto-friendly institution. By the end of September, nearly a quarter of its deposits were from the digital asset sector.
Former Democratic congressman from Massachusetts Barney Frank, who is also a Signature Board member, says that regulators seized the bank to send an anti-crypto 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.
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This article has been originally published at: https://dailyhodl.com/2023/03/17/us-regulator-will-require-any-buyer-of-failed-signature-bank-to-scrap-the-companys-crypto-business-report/