U.S. Senator Elizabeth Warren alleges that Signature Bank failed because it “bought into its get-rich-quick narrative” and “embraced crypto customers with insufficient safeguards.” Emphasizing that the bank took “excessive risk,” the senator demanded answers from the CEO of Signature Bank regarding “the economically disastrous outcomes you created.”
Senator Elizabeth Warren’s Letter to Signature Bank’s CEO
U.S. Senator Elizabeth Warren (D-MA) has attributed the failure of Signature Bank to its acceptance of crypto customers without having sufficient safeguards, Yahoo Finance reported Thursday. Signature Bank was seized by the New York State Department of Financial Services last Sunday, becoming the third-largest bank in the U.S. to fail.
In a letter to Signature Bank CEO Joseph DePaolo, Senator Warren wrote:
You owe your customers and the public an explanation for the economically disastrous outcomes you created: you worked hard to weaken the rules, promised that they ‘bode well’ for your bank — and then destroyed it with bad decision-making and excessive risk-taking.
“Congress and the public must learn the lessons from the failure of Signature Bank,” the senator stressed.
The lawmaker argued that Signature Bank…