• Bank of America is reportedly planning to acquire Signature Bank, a U.S. bank that went into receivership last week.
• Bill Ackman, investor and short-seller, took to Twitter to announce the news.
• The FDIC had previously asked potential bidders for Signature to “give up” crypto aspects of the business but this was later denied by CoinDesk.
Bank of America Acquiring Signature Bank
Bank of America is reportedly planning to acquire distressed U.S. bank Signature Bank, one of the banks that went into forced receivership after a crisis in the U.S. banking sector last week. Investor and renowned short-seller Bill Ackman took to Twitter on March 17th with his announcement that BOA has plans to step in and acquire Signature Bank, worth an estimated $222 billion according to Forbes.
FDIC Asks Potential Bidders To Give Up Crypto Aspects Of The Business
On March 15th Reuters reported that the FDIC told potential bidders for Signature they must „give up“ crypto aspects of the business; however, this was soon denied by CoinDesk who reported on March 17th that this claim may have been politically motivated as board member Barney Frank is known for his anti-crypto sentiment during his role as co-sponsor of Dodd-Frank Act in Congress.
Neither BOA Nor Signature Have Responded To Ackman’s Tweet
Neither Bank of America nor Signature have responded yet regarding Ackman’s tweet which proclaimed their acquisition plans; however, both New York Regulator and FDIC spokespeople recently stated that their loss of confidence in Signature’s leadership stemmed from a recent bank run rather than any specific connection to crypto assets or technologies – not from political motivations against cryptocurrency related activities as initially assumed by many investors and industry participants alike after reading earlier reports written by Barney Frank himself.
Crisis In US Banking Sector
Last week saw a crisis in the US banking sector, with several banks going into forced receivership due to mismanagement or other issues causing them financial difficulty; amongst these banks was New York based Signature Bank which subsequently saw itself at risk of being acquired by outside third parties before BOA stepped in with its proposed takeover bid – should it come into fruition as suggested by Bill Ackman on Twitter then it could well prove beneficial for both BOA and its customers given its significant size and reputation within the industry thus far – though only time will tell how things pan out between now and when an official deal is announced if indeed one does materialize between both parties involved as suggested on social media platforms such as Twitter today (March 17th).
Conclusion
The news comes at a critical time when traditional banking institutions are feeling extra pressure from digital currencies such as Bitcoin challenging their dominance over global markets – should BOA successfully acquire Signatures then this would mark an important milestone for them amidst these uncertain times where anything could happen next for existing financial systems across continents worldwide moving forward into 2021 onwards towards future developments within this space overall too so stay tuned!