by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Aug 17 – Alongside the larger flame-out of Silicon Valley Bank, Signature Bank too failed.
The Federal Reserve in belated response to Inner City Press' FOIA request says it has no record of reviewing Signature and crypto, nor any "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."
Federal Reserve letter to Inner City Press here
The Fed did, however, belatedly give Inner City Press the Farmington State Bank application it approved, with 100% ownership by Bahamas based Jean Chalopin. It's now on Inner City Press' DocumentCloud here.
Now on August 17, after FTX's Sam Bankman-Fried has been remanded to prison pending trial (Inner City Press "Crypto Creeps" book here), the Federal Reserve has belatedly taken action on Farmington, the horse decidedly out of (and in the case of SBF back in) the barn: "The Federal Reserve Board on Thursday announced an enforcement action against Farmington State Bank, of Farmington, Washington, and its holding company, FBH Corporation. In 2022, Farmington improperly changed its business plan without notifying the bank's supervisors and obtaining prior approval for those changes. Farmington has previously announced that it will voluntarily sell its loans and deposits to the Bank of Eastern Oregon."
On April 8, Inner City Press filed a FOIA appeal with the Fed: "This is an appeal of the FRB's denial and delayed and untransparent processing of and determinations on Inner City Press' December 22, 2022 FOIA request... After more than three months, all the FRB provided was the public portion of Farmington State Bank's application - this while FRB Governor Barr just told Congress that the Fed wants to be transparent, including to outside reviews. Most cynically, the Denial claims that "confidential information is not responsive" - basing that on its interpretation of a first request for clarification, a misinterpretation that all Inner City Press was request was previously public information - information which even then the Fed did not provide for eleven weeks. We wanted and want the records reflecting the FRS' review of Farmington State Bank's application, and the records about the Fed's review of crypto and the names firms: 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).
Does the Fed as Governor Barr said want to be transparent or not?
We'll have more on this.
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 FTX... 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."
The Federal Reserve acknowledged receipt and said it was granting expedited process. Then -- nothing.
Now, as the Fed belatedly backs up 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 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?"
Inner City Press again immediately responded and clarified, about FTX. Now the response above. Watch this site."
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