Signature Bank failed to understand risks associated with crypto: FDIC chair By Cointelegraph

Investigations into the collapse of Signature Bank (OTC:) point toward illiquidity circumstances and poor management. However, the Federal Deposit Insurance Corporation (FDIC) chairman, Martin Gruenberg, believes the bank’s failure to understand the risks associated with cryptocurrencies expedited its fall.

Speaking at a recent United States House of Representatives Financial Services Committee hearing on Oversight of Prudential Regulators, Gruenberg highlighted the recent failures of Silicon Valley Bank (SVB) and Silvergate Bank, which eventually manifested in large declines in stock prices and subsequent deposit outflows at other banks.