Crypto-friendly Cross River Bank faces FDIC scrutiny over 'unsafe' practices
The Federal Deposit Insurance Corporation issued a consent order to crypto-friendly Cross River Bank regarding “unsafe or unsound banking practices.”
Signature Bank Failed Because of Mismanagement, Contagion, FDIC Report Says
Signature Bank (SBNY) fell apart due to mismanagement by its officers and “contagion effects” after the collapse of Silicon Valley Bank (SVB) and wind-down of Silvergate Bank, a federal bank regulator said Friday.
US Treasury Official: Crypto Had No Direct Role in Bank Failures
Nellie Liang, the US Treasury Department's undersecretary for domestic finance, stated that crypto did not play a direct role in the recent failures of Silicon Valley Bank (SVB) and Signature Bank. While Signature Bank was particularly active in the sector, with about a fifth of its deposit base tied to crypto customers at the end of 2022, Liang did not believe that digital assets should be blamed for the banks' runs. The banks' failures were attributed to business risks that undermined their resilience.
FDIC Faces $23 Billion in Costs From Bank Failures. It Wants Big Lenders to Pay
The Federal Deposit Insurance Corp., facing almost $23 billion in costs from recent bank failures, is considering steering a larger-than-usual portion of that burden to the nation’s biggest banks, according to people with knowledge of the matter.
FDIC Seeking Signet Buyer, Returning Signature Crypto Deposits Next Week
The Federal Deposit Insurance Corporation (FDIC) is seeking a buyer for Signet, a digital asset custody platform, and plans to return Signature Bank's crypto deposits next week. The move is part of the FDIC's broader efforts to regulate the cryptocurrency industry and promote greater transparency and security in the market.
Signature Bank’s Crypto Clients Must Close Accounts Within A Week
The US Federal Deposit Insurance Corporation (FDIC) has ordered Signature Bank's remaining crypto clients to close all of their accounts at the bank by April 5. This comes after the FDIC took over Signature Bank, which had a negative balance at the Fed and was unable to provide accurate data regarding the amount of deficit incurred after Silicon Valley Bank went bankrupt. The FDIC's notice pertains to the $4bn in deposits from crypto customers that were excluded from New York Community Bancorp's takeover of most of Signature's deposits and loans. The fate of Signet, the bank's payment network developed for cryptocurrency payments, remains unclear.
FDIC Investigating Signature Bank and Silicon Valley Bank for Mismanagement and Dangerous Concentrations in Digital Assets
The Federal Deposit Insurance Corp. (FDIC) is investigating the actions of the leaders of Signature Bank and Silicon Valley Bank for their role in the banks' collapses, according to Chairman Martin Gruenberg. In testimony prepared for a U.S. Senate hearing, Gruenberg detailed their mismanagement and dangerous business concentrations, particularly in digital assets at Signature Bank. The FDIC has put itself on the hook for an expected $22.5 billion hit to its insurance fund, mostly to cover uninsured deposits, due to the fall of the two banks.
First Citizens Bank Acquires Silicon Valley Bank, FDIC Estimates $20B Loss
First Citizens Bank & Trust Company has acquired Silicon Valley Bank (SVB) in a deal mediated by the Federal Deposit Insurance Corporation (FDIC). As of March 10, 2023, SVB had $167 billion in total assets and approximately $119 billion in total deposits.
Crypto-Friendly SVB Acquired by First Citizens Bank at 99% Discount
First Citizens Bank acquires Silicon Valley Bank (SVB) for $500 million. The crypto-friendly Silicon Valley Bank bank was worth $40 billion a year ago, now it’s acquired at a 99% discount. First Citizens BancShares will take over $119 billion in deposits.
SVB Financial Must Wait to Get Back $2 Billion from FDIC
The former owner of Silicon Valley Bank, seized earlier this month by regulators, will need to wait, possibly for several months, to know if it can get back about $2 billion in cash it would need to repay bondholders and other creditors.
