DEEP TROUBLE

Signature Bank Faced Criminal Investigation Before Spectacular Collapse: Report

The SEC was also looking into the bank’s activity, according to Bloomberg.

Before its collapse over the weekend, Signature Bank was being investigated by U.S. prosecutors over its work with crypto clients, Bloomberg reports. The outlet cited sources familiar with the matter saying that Justice Department investigators in both Manhattan and Washington were trying to establish if Signature had sufficient protections in place to detect possible money laundering. The Securities and Exchange Commission was also reportedly examining the issue. Regulators seized control of Signature Bank on Sunday, days after the collapse of Silicon Valley Bank, triggering panic about the solidity of the U.S. banking system. On Tuesday, New York’s financial regulator said Signature Bank’s closure stemmed from “a significant crisis of confidence in the bank’s leadership” and had “nothing to do with crypto.”