There are still layers of information that are to be unfolding on the matter of the biggest banking failure in the history of the USA. One such revelation has been published recently about Signature Bank.
The secret report has suggested that the bank was under investigation on account of money laundering charges. The report has also informed that two separate regulatory agencies were conducting this investigation.
This new report has been disclosed to the public by Bloomberg. The new article has also provided the reference of the stakeholders that were involved in the matter and had prior knowledge about it.
These investigators hailed from the US Department of Justice, and they were trying to ascertain whether banking officials adopted appropriate measures to avoid money laundering operations by its clients.
Mismanagement and Illegal Activities
Bloomberg report and sources have cited that the regulators were trying to ensure whether this bank deliberately ignored adopting preventive measures. The lack of these preventive measures can lead to enabling illegal activities among the users and would prevent law enforcement agencies from completing the vetting process of threat actors.
The Securities and Exchange Commission was the second regulator that looked into the activities and operating methods of Signature Bank.
Bloomberg has made these assertions based on testimonies from two anonymous sources. However, the article has refrained from citing the details about the nature of the investigation that was carried out by the SEC.
On the other hand, the article has also not provided any details about the duration and initiation of these investigations. The only conclusion was noted that the bank was closed by regulators from New York state.
The Bloomberg report has suggested an idea that it is possible that the details of these investigations were not made public because the Signature bank was exonerated in both cases. These reports are now made public when the shareholders of the bank filed a lawsuit against the former executives of the banking enterprise.
This lawsuit aims to try the former bank executives with the charges of being financially stable and taking preventive measures three days before the bank was shut down.
Barney Frank, one of the controversial board members of Signature bank, has told media that regulators have picked the bank to send a strong anti-crypto message.
He further explained that crypto-friendly banking enterprises had become the focus of financial regulators to push their agenda against crypto. He pointed out that insolvency does not happen on account of fundamentals.