Signature Bank seized to send banks a message, director says

[excalibur]

And on today's 'Cats & Cosby' on 77 WABC Radio, Barney Frank repeated what he said days ago, there was NO NEED to shut Signature Bank.

This is over-the-top nonsense being pulled right in front of our eyes by a dangerous administration. With the help of a compliant MSM.

A regulatory takeover of a New York-based bank was intended to send a message to U.S. banks to stay away from the cryptocurrency business, a former member of Congress who was on the bank’s board says.

Former U.S. Rep. Barney Frank said Monday that he believes the state officials behind the action were trying to make an example of Signature Bank in takeover that he said was the wrong move. Despite a wave of withdrawals, the bank’s situation was under control before regulators swooped in, he said.

“This was just a way to tell people, ‘We don’t want you dealing with crypto,’” Frank said in an interview.

Frank, a Democrat who served in Congress from 1981 until 2013, coauthored the Dodd-Frank act that boosted government oversight of banks following the 2008 financial crisis.

He was a director at Signature Bank until the New York Division of Financial Services took it over Sunday and gave control of it to the FDIC, the federal agency that insures bank deposits, until the bank can be sold.

Frank said the bank’s former operators have no recourse. But he said he expects some vindication when Signature is sold eventually.

“I believe they’re going to get a very good price,” Frank said, “proof that it was not a bank problem.”

...​

Signature Bank seized to send banks a message, director says

A regulatory takeover of a New York-based bank was intended to send a message to banks to stay away from the cryptocurrency business.

apnews.com

 

[excalibur]

What he says about crypto was my immediate thought when this went down with SVB and then Signature bank because I knew both were heavily into crypto.

 

[White 6]

And on today's 'Cats & Cosby' on 77 WABC Radio, Barney Frank repeated what he said days ago, there was NO NEED to shut Signature Bank.

This is over-the-top nonsense being pulled right in front of our eyes by a dangerous administration. With the help of a compliant MSM.

​

A regulatory takeover of a New York-based bank was intended to send a message to U.S. banks to stay away from the cryptocurrency business, a former member of Congress who was on the bank’s board says.​

​

Former U.S. Rep. Barney Frank said Monday that he believes the state officials behind the action were trying to make an example of Signature Bank in takeover that he said was the wrong move. Despite a wave of withdrawals, the bank’s situation was under control before regulators swooped in, he said.​

​

“This was just a way to tell people, ‘We don’t want you dealing with crypto,’” Frank said in an interview.​

​

Frank, a Democrat who served in Congress from 1981 until 2013, coauthored the Dodd-Frank act that boosted government oversight of banks following the 2008 financial crisis.​

​

He was a director at Signature Bank until the New York Division of Financial Services took it over Sunday and gave control of it to the FDIC, the federal agency that insures bank deposits, until the bank can be sold.​

​

Frank said the bank’s former operators have no recourse. But he said he expects some vindication when Signature is sold eventually.​

​

“I believe they’re going to get a very good price,” Frank said, “proof that it was not a bank problem.”​

​

...​

Signature Bank seized to send banks a message, director says

A regulatory takeover of a New York-based bank was intended to send a message to banks to stay away from the cryptocurrency business.

apnews.com

Who knew, that Barney Frank would become a favorite of Right wingers to quote, even though he sits on the board of Signature Bank. Not surprising a member of management would speak for what good shape the bank was, under the circumstance, though Signature was a big lender in the Cripto currency market, a gamble, lost.

 

[saveliberty]

Turn the clock back on Barney:

Congressman Frank, of course, blamed the financial crisis on the failure adequately to regulate the banks. In this, he is following the traditional Washington practice of blaming others for his own mistakes. For most of his career, Barney Frank was the principal advocate in Congress for using the government’s authority to force lower underwriting standards in the business of housing finance. Although he claims to have tried to reverse course as early as 2003, that was the year he made the oft-quoted remark, “I want to roll the dice a little bit more in this situation toward subsidized housing.” Rather than reversing course, he was pressing on when others were beginning to have doubts.

His most successful effort was to impose what were called “affordable housing” requirements on Fannie Mae and Freddie Mac in 1992. Before that time, these two government sponsored enterprises (GSEs) had been required to buy only mortgages that institutional investors would buy–in other words, prime mortgages–but Frank and others thought these standards made it too difficult for low income borrowers to buy homes. The affordable housing law required Fannie and Freddie to meet government quotas when they bought loans from banks and other mortgage originators.

Basically Franks creates the environment for bank failures. Again...