New York State regulators did not shut down Signature Bank (SBNY) because of the firmrs crypto clients, said Maria Vullo, a former superintendent at the New York State Department of Financial Services (NYDFS).

The decision was lbased upon whatever the data was with respect to the withdrawals by customers,r Vullo told CoinDesk TVrs lFirst Moverr on Friday.

On Sunday, New York-based Signature Bank closed its doors following action by state regulators in what appeared to be a preventive measure to reduce further contagion following the collapse of Silicon Valley Bank (SVB).

A joint statement by the Federal Reserve, Federal Depository Insurance Corporation (FDIC) and the U.S. Treasury Department said depositors at Signature Bank would be made whole.

According to Vullo, echoing recent comments by current Superintendent Adrienne Harris, Signature Bank did not provide reliable and consistent data, creating a significant crisis of confidence in the bankrs leadership.

lI don't think you close down a bank because of a policy reason, you do because its risk management or its financial picture is unsafe and unsound,r said Vullo, who served as NYDFS superintendent from 2016 to February 2019.

She said Signature Bank lmay have also suffered the consequences of contagion risksr that were ongoing following the closure of SVB just days earlier.

Nonetheless, the timing by regulators is significant, Vullo said. By quickly dealing with SVB and Signature, bank regulators were able to lsend a very strong message to the public that the system is OK and that we're going to take care of depositors,r she said.

The latter was important, Vullo said, because it gave depositors a reason lto not pull out their money from other banks.r

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