We’re a big New York City housing lender more than anything else, and commercial property. Because whatever Silicon Valley had with regard to high-tech and crypto, we don’t. I can tell you from Signature’s part was that it triggered a run on deposits in our bank irrationally. I’m not familiar with Silicon Valley Bank, so I can’t tell you. Who is to blame for Silicon Valley Bank’s collapse? John, Frank explained why he blames regulators for unreasonably putting Signature Bank out of business and what he really thinks about banking crypto - and defended himself against critics who have accused him of switching sides. The Wall Street Journal, meanwhile, sneered with Schadenfreude in an op-ed at the man who kneecapped the banking industry more than a dozen years ago.įrank, for his part, was quick to suggest that Signature was the victim of a political attack, telling CNBC on Monday that “regulators wanted to send a very strong anti-crypto message.” The New York Department of Financial Services (DFS) on Tuesday pushed back on that assertion, telling Bloomberg it had a “crisis of confidence in the bank’s leadership.” But in a new interview with New York, Frank argued back. Frank was “was having his very own Dick Fuld moment,” Bloomberg wrote, referring to the last chief executive of Lehman Brothers. The irony of the man who sicced financial watchdogs on the banks now on the losing side of the latest banking crisis was too much for many to resist. The news blindsided just about everyone, including Barney Frank, the former congressman and architect of the landmark Dodd-Frank banking regulations, who also happens to sit on Signature’s board. Then, just before the Oscars Sunday evening, New York regulators announced that they had closed and “taken possession” of Signature Bank, a Manhattan institution relied upon by a couple of major crypto companies (among many other clients, including players in New York’s real-estate market). Following Silicon Valley Bank’s unexpected collapse Friday, people on Wall Street and beyond tried to piece together what went wrong and how regulators missed the signs that led to the second-largest bank failure in U.S. The sudden string of bank failures over the past week conjured traumatic flashbacks of the 2008 financial crisis for many a banker. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Imag “I was sort of vindicated - they have not argued that we were insolvent,” says the author of the Dodd-Frank Act.
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