Signature Financial institution addresses purported deceptive statements by WSJ 

Signature Financial institution has addressed purported false statements by the Wall Avenue Journal of their Jan. 23 article titled “U.S. Dwelling-Mortgage banks Assist Crypto Lenders Stem Outflows.” The financial institution claims it’s neither a crypto lender nor affected by a liquidity crunch attributable to large fund outflows.

Signature Financial institution clarifies false statements made by WSJ

On Jan.23, the Wall Avenue Journal coated an article with the headline “U.S. Dwelling-Mortgage Banks Assist Crypto Lenders Stem Outflows.” The piece was subsequently reported by crypto.information from a distinct angle.

Signature Financial institution, a New York-based full-service business financial institution, posted a press launch devoted to the WSJ’s article. In response to it, the headline labeled the enterprise as a cryptocurrency lending financial institution, which is deceptive and inaccurate, because it doesn’t provide such companies within the Web3 house:

“The headline falsely refers to Signature Financial institution as a ‘crypto lender.’ Signature Financial institution doesn’t lend within the crypto house, nor does it have loans which might be backed by crypto belongings. Moreover, the financial institution doesn’t make investments, doesn’t maintain, and doesn’t custody crypto belongings. Signature Financial institution’s relationships with shoppers within the crypto house are restricted to US dollar-denominated deposits solely.”

Signature Financial institution’s assertion

No liquidity crunch 

Signature Financial institution additional famous that the Federal Dwelling Mortgage Financial institution of New York (FHLB) has been appearing as its liquidity companion for the previous 20 years, including that the reported mortgage obtained from the latter is a part of its routine operations, not a results of a liquidity crunch stemming from large crypto funds withdrawals as purported by the WSJ. 

“As of year-end, Signature Financial institution’s FHLB advances represented 10 % of complete belongings. Though the financial institution has ample liquidity ($25.3 billion in borrowing capability as of year-end), it plans to scale back its borrowings with different deposits over time.”

Signature Financial institution’s assertion

As reported by crypto.information final month, Signature Financial institution revealed plans to considerably slash its crypto-linked deposits by as a lot as $10 billion attributable to market uncertainties caused by the FTX collapse.

Equally, on Jan. 22, the financial institution additional decreased its crypto publicity by accepting solely deposits above $100k from its prospects within the house.