Both Silvergate bank and Silicon Valley Bank should receive takeover offers as of Friday (17). However, two Reuters sources point out that there is a special condition attached to the Signature acquisition.
According to the information, buyers must agree to leave all cryptocurrency-related businesses.
The clause, if true, is quite controversial. After all, Barney Frank, responsible for the Dodd-Frank Act, claimed this week that Signature’s closure was arbitrary and that the bank was being used as a “cover boy” in a “anti-crypt message” sent by the US government.
The New York Department of Financial Services even refuted Frank the next day. However, this new information lends more support to the former US congressman’s arguments.
Elon Musk would be interested in buying a bankrupt bank
Billionaire Elon Musk, after acquiring Twitter, has already shown plans to create a “super app” with various functions such as a social network, a cryptocurrency wallet and other services.
For example, last week’s auction of bankrupt banks caught Musk’s attention.
“— I think Twitter should buy SVB and become a digital bank”said Razer’s co-founder.
“—I am open to the idea”replied Elon Musk.
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
While the talk was about Silicon Valley Bank (SVB), the billionaire could also be interested in Signature. After all, the bank is known for being cryptocurrency-friendly, and Musk and his companies continue to hold Bitcoin.
However, information from Reuters may make the billionaire abandon this idea.
“Every Signature buyer must agree to refrain from all cryptocurrency activity with the bank”two anonymous sources tell Reuters.
Finally, both government agencies and the bank itself declined to comment on the matter to Reuters. Either way, the information heats up the discussion about Operation Choke Point 2.0.
Banking crisis spreads to other countries
After the closure of three US banks, including the 16th largest in the country, the banking crisis is spreading to other continents.
For example, Credit Suisse said this Thursday (16) that it is taking 50 billion Swiss francs (R$284 billion) from the Swiss central bank to strengthen its activities.
Between this Tuesday (14) and Wednesday (15), shares of the bank fell 31%. Since the start of the year, Credit Suisse is down 71%, even after rising 22% with the announcement above.
Therefore, it is possible that more banks will fail and that Elon Musk can calmly choose which one to buy to use in his super application. Moving forward, governments now seem to have bigger concerns than cryptocurrencies.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
