Barney Frank Blames Bank Failures On Cryptocurrencies

Bloomberg News reports:

Barney Frank — the former congressman known for the Dodd-Frank Act, which overhauled US banking regulation to prevent another global financial crisis — said there was one thing lawmakers and regulators didn’t reckon with back in 2008: cryptocurrencies.

“Digital currency was the new element entered into our system,” the 82-year-old Frank said in an interview Sunday. “A new and destabilizing – potentially destabilizing – element is introduced into the financial system. What we get are three failures.”

Signature Bank was closed by New York state financial regulators Sunday in a shocking third banking collapse in a week, after the failure of fellow crypto-friendly bank Silvergate Capital Corp. and the seizure of SVB Financial Group’s Silicon Valley Bank. Frank himself is a board member at Signature Bank.

Read the full article.