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Jinse Finance reported that Martin J. Gruenberg, chairman of the US Federal Deposit Insurance Corporation (FDIC), said that poor management was the root cause of Signature Bank's failure, and failure to understand the risks associated with cryptocurrencies accelerated its collapse. In addition, the bank failed to understand the risks associated with and reliance on deposits in the crypto industry, and its vulnerability to the contagion of crypto industry turmoil that occurred in late 2022 and into 2023.


The failures of SVB and Signature Bank resulted in losses of $16.1 billion and $2.4 billion, respectively, Gruenberg said. Banks with assets of $100 billion or more deserve special attention, including consideration of long-term debt requirements to facilitate an orderly resolution.
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