Sen. Elizabeth Warren (D., Mass.) called for an independent investigation into the recent failures of two U.S. regional banks, Silicon Valley Bank and Signature Bank. In a letter Sunday to the inspectors general of the Treasury Department, the Federal Deposit Insurance Corp. and the Federal Reserve, Ms. Warren called for the probe to examine the management and oversight of the…
The scene cuts to a theater stage. “What possible fate will become of our bank?” a chorus belts. “Other than to diminish and fail?” Chairman Scott Shay pops up, shaking his head. “I happen to know for a fact that won’t happen.” It did happen. On Sunday, the third-biggest failure in US banking history marked the downfall of a group of…
US prosecutors were investigating Signature Bank’s work with crypto clients before regulators suddenly seized the lender this past weekend, according to people familiar with the matter. Justice Department investigators in Washington and Manhattan were examining whether the New York bank took sufficient steps to detect potential money laundering by clients — such as scrutinizing people opening accounts and monitoring transactions…
The bank also said its digital asset-related client deposits stood at $16.52 billion. Signature was one of the few financial institutions that had opened its doors to taking deposits of crypto assets, a business it entered into in 2018. That ended up being a fateful decision because the bottom fell out of crypto assets after the collapse of FTX and…
Signature Bank was closed by regulators on Sunday, the second massive bank failure in three days. The New York-based bank faced a crisis of confidence after midsize lender SVB Financial Corp. was seized by regulators on Friday. Signature was also reeling from a bet on crypto banking that foundered after the sector imploded and banking regulators cracked down on lenders’…