Investor and famous “short seller” Bill Ackman, who shared a post on Twitter on March 17, made statements that Bank of America could acquire a crypto money company. Here are the details…
Bank of America may buy cryptocurrency company
cryptocoin.com As we have reported, the US banking sector experienced a major crisis last week. According to Bill Ackman, who tweeted on the subject, Bank of America has a buyout plan. Ackman said Bank of America plans to buy the distressed US Signature Bank, one of the banks that was mandated “appointed trustees” in the aftermath of the crisis. On March 15, Reuters reported that the FDIC told Signature that potential bidders should “give up” on the crypto parts of the business. However, a CoinDesk report dated March 17 denied this to be true.
On March 17, Ackman announced that Signature would soon find itself in the hands of Bank of America, one of the world’s leading financial institutions valued at an estimated $222 billion. In response to earlier reports written by Barney Frank, a member of Signature Bank’s board of directors and co-sponsor of the Dodd-Frank Act during his tenure in Congress, the regulator’s actions may have been politically motivated over anti-crypto sentiment.
There was a lack of “reliable” information at Signature Bank
However, a spokesperson from both the New York Regulator and the FDIC made the statement more recently. They pointed to the reason behind the loss of confidence of US regulators in the leadership of Signature bank. It was stated that this was not due to any particular connection with crypto, but to a recent bank attack and a lack of “trusted” information. Neither Bank of America nor Signature responded to Ackman’s tweet.
Meanwhile, Representatives Maxine Waters and Patrick McHenry said in a March 17 announcement that U.S. lawmakers will listen to statements from federal financial regulators “in response to the failures of Silicon Valley Bank and Signature Bank.” It is stated that this hearing will take place on March 29. Martin Gruenberg, chairman of the FDIC, and Michael Barr, the Fed’s Vice Chairman of Audit, are expected to appear before Congress.
On March 10, Silicon Valley Bank shuttered after a bank run among large depositors, but the government stepped in to announce that most uninsured depositors would be compensated. In response, reports suggested Signature Bank had no solvency issues at the time of its shutdown on March 12, but New York regulators stepped in and gave the FDIC control of the firm’s insurance process.