Failing to Understand Risks Linked with Cryptocurrencies Expedited Signature Bank’s Fall: FDIC Chief
TEHRAN (Tasnim) – Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg believes Signature Bank’s failure to understand the risks linked with cryptocurrencies expedited its fall.
Investigations into the collapse of Signature Bank point toward illiquidity circumstances and poor management.
However, Gruenberg is of the opinion that the bank’s failure to grasp out the risks associated with cryptocurrencies expedited its fall, Investing.com reported.
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.
