Signature Bank: Authorities Were Investigating Before the Collapse

According to a Bloomberg report, Signature Bank was investigated by two U.S. government agencies before the collapse.

According to a Bloomberg report, Bloomberg that Signature Bank was investigated by two U.S. government agencies prior to the collapse.

According to people "familiar with the case," both the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) had looked into Signature Bank. Authorities were examining whether the bank took sufficient steps to flag potential money laundering by its customers.

In particular, Signature Bank’s transactions with crypto clients were reviewed, with the verification process deemed not sufficient. On March 13, authorities seized the bank. The company is now under the FDIC’s control.

Board member Barney Frank called the takeover a 'political decision.' According to Frank, the bank was "solvent enough" to continue its operations.