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Comment by hammock | Hacker News Reader

Yes. Add to your list the seizure of Signature Bank, and this week’s rumors of Operation Choke Point 2.0 focused on keeping commercial banks out of crypto

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Boggles the mind that people are actually taking people like Nic Carter and Barney Frank at face value (that latter one is particularly egregious considering he's literally a former director of the bank) when they say that the FDIC seized a bank with $110 billion in holdings solely to target $4 billion in crypto. Believe it or not, the Fed doesn't care enough about crypto to start a regional banking crisis and blow up hundreds of billions of dollars.

It was shut down by New York, not the FDIC.

Even better; New York State absolutely has no reason to set off a regional banking crisis and shut down a bank with $110 billion in deposits over $4 billion in crypto.

The dinosaurs at the FED feel just the same as all those on this site that blather on bitterly about crypto waiting for it die. I can’t wait to read the salty howling at end of the year when crypto is at an all time high.

You’re correct that this community will be salty as bitcoin reaches value milestones such as $100,000/coin. And it’s easy to fall into the trap of laughing at their misery. But it would be much much more enjoyable for me to see bitcoin “click” for them.

It takes the effort of thinking deeply about what money is, where it came from, how it’s used geo-politically, how it’s used against populations, etc. it’s a lot of effort, honestly.

But let’s not cheer on bitcoin’s USD value. The real victory is when it’s detached and we stop comparing bitcoin to garbage fiat.

Crypto was a drop in the ocean.

It just not that important.

Something like 3% of the holdings of signature.

Pretty sure Signature was taken over because they were in financial trouble.

"Barney Frank Was Right About Signature Bank. The FDIC all but confirms it closed the bank over crypto."

https://archive.is/MEADq#selection-133.5-137.57

"Everything But the Crypto: Flagstar Scoops Up Failed Signature Bank. While the Federal Deposit Insurance Corporation (FDIC) denied reports that any buyer of Signature Bank would need to divest its crypto business, the buyer, New York Community Bancorp-owned Flagstar Bank, did anyway."

https://www.pymnts.com/cryptocurrency/2023/everything-but-th...

Flagstar decided ‘shit no, I’m not going to take over a book of shitty crypto assets valued at god knows what they could be a massive liability’.

The key validator here is that they also dumped a heap of mortgages and loans that they considered toxic. The value of these other assets that Flagstar decided to not write into their purchase agreement was $60 billion under current accounting.

They just decided that the crypto is no good. Along with 60 bn worth of other stuff. And they can stick that with the FDIC to deal with.

[0] https://newsletterhunt.com/emails/27219 (last section, meanwhile in America)

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