When speaking to CNBC, Frank indicated that there was “no actual objective rationale” for the FDIC to seize Signature Bank because the financial institution was “technically solvent.” This revelation caused a chain reaction of shocking new information.
Frank gave his opinion to Bloomberg following the closure of the bank on March 13, 2023, which was ordered by the regulators. This comment is a continuation of what he started.
According to a comment attributed to Frank, a member of the board of directors at Signature Bank, “I think that if we’d been allowed to operate tomorrow, that we could’ve lasted.”
When customers moved their deposits to larger Wall Street banks like JPMorgan, regulators were forced to close down the bank, much to the shock of the bank’s management. These larger banks included JPMorgan. On March 12, 2023, the officials of the bank believed that they had stabilized the huge outflows of funds, which had been a problem since March of the previous year. Importantly, Signature had previously announced that they will minimize the amount of cryptocurrency that was stored in their deposit base by $10 billion. This will be an important step forward.
In addition, not a single report has been produced which indicates that the corporation has filed for bankruptcy.
