Maria Vullo, the former superintendent of the New York State Department of Financial Services, has denied claims that Signature Bank was closed down due to its crypto clients.
According to Vullo, the decision was based on the bank’s failure to provide reliable and consistent data regarding customer withdrawals.
In a joint statement, the Federal Reserve, Federal Depository Insurance Corporation, and the U.S. Treasury Department assured depositors that they would be reimbursed.
While Signature Bank may have suffered contagion risks following the closure of Silicon Valley Bank, Vullo stressed that banks are only closed down if their risk management or financial picture is unsafe and unsound.
Nonetheless, the quick action by regulators in dealing with both banks sends a strong message to the public that the system is stable and that depositors will be protected.