Federal
Reserve Closes Signature Bank While
Dodging FOIA by Inner City Press As on FTX
By Matthew
Russell Lee, Patreon
SDNY COURTHOUSE,
March 12 – Amid the
prosecution of Samuel
Bankman-Fried on wire fraud,
money laundering and campaign
finance violation charges, the
role of the Federal Reserve
has been coming to the
fore.
Inner City
Press was unsurprised to learn
of Fed laxity as Alameda
invested in Farmington State
Bank, renamed Moonstone Bank.
Inner City Press
submitted to the Federal
Reserve a Freedom of
Information Act request
including about
Signature Bank: "This is a
FOIA request for all record
regarding the FRS' approval
for the application / request
for membership in the Federal
Reserve System by Farmington
State Bank (giving rise to
FRBSF president Daly's
approval on a delegated basis
in 2021), and the subsequent
renaming of the bank to
Mooonstone and taking of a
stake by FTX/Alameda.
Also, for Silvergate with its
FTX connections, record
reflecting any review by the
FRS of Silvergate's (and
Provident Bancorp Inc.,
Metropolitan Commercial Bank,
Signature Bank, Customers
Bancorp Inc.) of the banks'
connections with
crypto-currency firms... This
is a request for expedited
treatment, in light of the
indictment of FTX / Alameda's
Sam Bankman-Fried and Caroline
Ellison (cooperating), and an
upcoming January 3, 2023
hearing."
The Federal
Reserve acknowledged receipt
and said it was granting
expedited process. Then --
nothing. Now, as the Fed
belatedly closes Signature
Bank after Silicon Valley
Bank, the Fed tries to paper
its delay: "Months after the
Federal Reserve said it
granted Inner City Press
expedited processing of its
FOIA request on the Fed's work
/ errors on crypto, and two
months after Inner City Press
answered a request for
clarification, past 4 pm on
Friday March 10, 2023, this:
"Good afternoon Mr. Lee
Staff is still unclear about
the scope of your
request. Referring to
the initial clarification
email below, the second part
of your request still needs
clarification.
“The second part of your
request seems to concern other
entities (Silvergate,
Provident Bancorp Inc.,
Metropolitan Commercial Bank,
Signature Bank, Customers
Bancorp Inc.). Please
confirm the scope of this part
of your request, did you
intend to seek applications
related information for these
entities? Clarifications
are needed in order to conduct
a search of Board records and
process this portion of your
request.”
I realize from your January 10
email response that you are
seeking application
submissions, Additional
Information “AI”, and approval
information. However, it
is unclear what application(s)
you seek this information
concerning. Did you
intend to seek applications
for FTX to acquire or merge
with Silvergate, FTX to
acquire or merge with
Provident Bancorp, Inc., or
FTX to acquire or merge with
Metropolitan Commercial
Bank? It is unclear the
connection you intended for
these institutions (other than
media mentions) and as such
conducting a search of Board
records cannot be
completed. Did you
intend to seek records that
reference all of these
institutions together?
Did you intend to seek
applications records about
each institution? If
this was your intent, we need
a target institution ABC Bank
and Provident, Signature Bank
and XYZ Bank, for
example. From these
examples alone, the
interpretations are
many. It would be
helpful if you could include
the date the application was
approved or announced in the
H.2. Doing so would
allow us to search and review
records more quickly, should
they
exist.
I realize that you responded
in a timely manner to our last
communication about this
request, but your comments
were not specific
clarifications with respect to
the named institutions in part
2 of your request that would
enable staff to conduct a
reasonable search. If
you have additional context,
please provide it as soon as
possible. After which,
staff may be able to make
reasonable interpretations
regarding the information you
seek." Inner
City Press again immediately
responded and clarified, about
FTX. Watch this site."
***
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