Bank Executives Accused of Blaming Crypto for Financial Collapses While Profiting Millions, Senators Criticize

Former chairman of Signature Bank, Scott Shay, has been criticized for appearing to blame cryptocurrency for the bank’s collapse while reportedly earning millions in bonuses and stock options. During a Senate Banking Committee hearing on May 16, Senator Cynthia Lummis called out Shay for his prepared statement on the bank’s collapse. Shay had stated that the bank began accepting deposits from businesses in the digital asset sector in 2018 but reduced its digital asset deposits in 2022 due to industry volatility. He claimed that the bank was seized by regulators after a bank with strong ties to the digital asset sector fell, leading to $16 billion being withdrawn from Signature. However, Lummis accused Shay of deflecting blame onto digital assets and regulators. Senator Elizabeth Warren also criticized Shay and Silicon Valley Bank CEO Gregory Pecker for keeping millions after recklessly crashing banks. Warren is working on a bipartisan bill to claw back such paychecks. In April, Adrienne Harris, superintendent of the New York Department of Financial Services, said it was ludicrous to blame crypto for Signature Bank’s collapse, calling it a “new-fashioned bank run.” The NYDFS had taken control of Signature Bank in March, claiming it was protecting the US economy from system risk.

J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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