According to Reuters, sources have said that the would-be acquirer of Signature Bank should divest Signature Bank’s crypto business. The last date for bidding is March 17.
Reuters reports are emerging that people close to the matter involving the Signature Bank and Silicon Valley Bank bids have until March 17 to submit their bids.
Sources said the regulators have asked those interested in acquiring the banks to submit their bids by that deadline.
Perhaps most interestingly, those who acquire the banks must “leave all crypto business” in Signature. United States authorities have expressed their displeasure over the effects of crypto businesses on banks, citing systemic risks.
The US Federal Deposit Insurance Corp is making a strong effort to see that the banking situation is resolved. It tried to sell SVB on Sunday but failed. It is now trying to quickly sell these two fallen banks – if not a full sale, a partial sale of the banks may be approved.
Sources also said that the aim is to give an advantage to traditional lenders over private equity firms. The authorities are facilitating this by restricting the financial access of banks to bidders with existing bank charter only. As a result, these bidders may study the financial position before submitting their offer.
Signature Bank is facing a criminal investigation
Signature Bank is facing criminal investigations from investigators at the Justice Department in Washington and Manhattan. According to recent reports, they are investigating whether the bank “took adequate steps to detect possible money laundering by customers”. The United States Securities and Exchange Commission is also investigating the bank, according to the outlet’s sources.
Specific actions under scrutiny include “examining the people who opened the accounts and monitoring transactions for signs of criminality”. In any case, it’s a troubling development for the bank. This comes after several notable incidents in the past few days.
bank under watch
In the midst of developments related to Signature, a report emerged last month that the bank had been aware of FTX transactions since June 2020. On a general level, analysts are wondering whether there is a hold on crypto-friendly banks.
A member of the bank’s board said the shutdown was politically motivated. Meanwhile, the New York regulator said that the closure of Signature Bank was not related to its involvement in the cryptocurrency sector.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.