Former fiery Bay State Congressman Barney Frank — the co-author of the Dodd-Frank landmark banking invoice — reportedly tried to take some tooth out of the regulation.
As a board member of Signature Bank, Frank sought to melt Dodd-Frank regs that former President Donald Trump really completed in 2018 — a transfer Frank denied.
Signature Bank has been taken over by the FDIC, the federal company that insures financial institution deposits till the financial institution might be offered. The financial institution was closed only a day after the federal government did the identical for Silicon Valley Bank.
Frank — who has earned greater than $2.4 million in compensation from Signature Bank since 2015, in accordance with the Wall Street Journal — stated Signature Bank will promote.
“I believe they’re going to get a very good price,” Frank instructed the Associated Press, “proof that it was not a bank problem.”
Frank, a Democrat who served in Congress from 1981 till 2013, co-authored the Dodd-Frank act that boosted authorities oversight of banks following the 2008 monetary disaster.
Signature’s takeover got here two days after regulators seized California-based SVB. Both adopted a rush of withdrawals from the banks, which catered to expertise companies.
The financial institution stated it was the primary FDIC-insured financial institution to launch a blockchain-based digital funds platform.
Frank stated Monday that he believes the state officers behind the motion have been making an attempt to make an instance of Signature Bank in a takeover that he stated was the mistaken transfer. Despite a wave of withdrawals, the financial institution’s state of affairs was underneath management earlier than regulators swooped in, he stated.
“This was just a way to tell people, ‘We don’t want you dealing with crypto,’” Frank stated in an interview with AP.