Member of the Board of Directors of Signature: the bank is not insolvent, is closed or is subject to anti-encryption position of the regulatory authority

On March 14, Barney Frank, a member of the Board of Directors of the Crypto Friendly Bank Signature Bank and a former US congressman, said that the sudden announcement of the takeover of Signature by the US regulators on Sunday night shocked the executives of the bank, Signature executives have explored “all ways” to improve the status quo, including finding more capital and evaluating the interests of potential acquirers. He said that by Sunday, the outflow of deposits had slowed, and executives believed that they had stabilized the situation. On the contrary, the senior management of Signature has been immediately dismissed and the bank closed on Sunday. Frank believed that part of the reason for this was that regulators wanted to send very strong anti-encryption messages, and said that “the reason why we became a typical representative was that there was no insolvency in the fundamentals”.

Interpretation of this information:

The message discusses the recent takeover of Signature Bank by US regulators, causing shock among the bank’s executives. They had been trying to improve the bank’s standing by exploring all options, such as finding more capital and evaluating potential acquirers. However, by Sunday, the outflow of deposits had slowed and executives believed they had stabilized the situation, but the bank was still closed down and its senior management dismissed. Barney Frank, a member of Signature’s Board of Directors, believes that one reason for this move was to send a strong message against encryption. He also commented that there was no actual insolvency in the bank’s fundamentals.