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foreign welcome back more bad news coming to light for Signature Bank U.S prosecutors were reportedly investigating the now field bank for its crypto client work before it was seized by Regulators that's ing to Bloomberg Yahoo finances David Hollerith joins us with the details so David I guess uh not a big surprise here that crypto was somehow involved in one of these Banks it's a tangled web we weave here uh what are the details yeah so Jared likes so like silvergate Capital which voluntarily shut down less than a week before signature was closed the signature was a crucial U.S banking partner for crypto businesses um and as of the end of December it was the largest U.S Bank in terms of uh crypto deposits um and as far back as uh late November uh signature had made efforts to uh to say that it was reducing its exposure to uh crypto deposits as a share of total deposits they plan to drop drop that from 20 to 15 percent now interestingly just to go through a list of some of the crypto firms that signature banged um it includes uh the now bankrupt lender Voyager digital which is currently trying to sell its customer deposits to finance us which as we know from bankruptcy documents is under investigation by the SEC um it's also it also was uh the banker for binance international until January Finance International has also been under investigation by the justice department for a number of years signature has also banked FDX and Alameda research and was hit by a class action lawsuit in February where it was the accuser uh claimed that signature was aware of and allowed the uh co-mingling of FTX assets customer assets through its Signet blockchain based payment Network which allows crypto firms to bank outside of typical hours now all this to say in the Bloomberg report that we've seen uh this morning it was pointed out um by the justice department uh or excuse me the U.S uh uh attorney in Manhattan that essentially uh they there is a statement that was put out by uh SEC chair Gary ginsler in that statement um ginsler said uh that the Securities regulator is has been monitoring the situation without speaking to any single firm uh would investigate and bring enforcement actions against any potential uh Securities violations so that's obviously um uh you know fair Fairly uh vague and could mean a lot of things but the fact that they pointed to that it does make us wonder whether or not there might be more here than we know um it's interesting David when we look at this bank I mean the signature has been around for a while right it's not always been a crypto bank because it existed before crypto existed so what do we know about how much crypto played into the company's demise yeah um uh signature board member uh Barney Frank has uh after the closure has been going out and and talking to uh press um and and he actually made claims um that the culprit for why the bank saw High withdrawal rates at the end of last year or excuse me an interval last week um was due to fear from crypto uh because of their crypto Focus uh given that silvergate and other crypto friendly U.S Bank um uh voluntarily closed uh last week um we also uh uh have statements from uh the the regulator that actually shut down signature the New York State Department of Financial Services um and to paraphrase what they said um they said uh crypto uh was not related to their decision for shutting down the business they also said that after the run-on deposit seen on Friday which could have to do with silvergate shutting down as well as svb which happened both in the in the days prior um that they had worked with the bank officials um over the weekend and the bank had failed to provide reliable and consistent data which created a significant crisis of confidence in the lead in the bank's leadership and it was this decision to take over the bank uh that was mainly due to data and the fact that on Monday the the regulator did not expect signature could could open business and conduct it in a safe and sound manner they also pointed out a signature's traditional uh business we don't really have a breakout of how much was commercial real estate but um commercial real estate is a high percentage of deposits and as Frank pointed out it was a lot of those depositors that uh got scared around the end of last last week yeah it makes sense and then we see that herd mentality once that starts happening whether it's its signature or at svb Dave thanks so much or Dave Howell Earth