Against all odds, Peter Schiff admits he played a role in his Puerto Rican’s bank closure that may cost his customers a lot of money. Covered: Peter Schiff’s Bank Closed By Regulators Peter Schiff Blames Himself Peter Schiff’s Bank Closed By Regulators Peter Schiff, who’s arguably best known for predicting the eventual demise of Bitcoin,::Listen
Against all odds, Peter Schiff admits he played a role in his Puerto Rican’s bank closure that may cost his customers a lot of money.
- Peter Schiff’s Bank Closed By Regulators
- Peter Schiff Blames Himself
Peter Schiff’s Bank Closed By Regulators
Peter Schiff, who’s arguably best known for predicting the eventual demise of Bitcoin, neglected to predict the eventual demise of his Euro Pacific Bank, which was closed on July 1st. The bank operates like any regular U.S. bank with chequing, savings accounts, as well as access to investments. However, it isn’t FDIC insured.
According to Peter Schiff, the bank, located in the libertarian-friendly U.S. Territory Puerto Rico, was forced to close by Puerto Rican regulators due to Net capital issues — a fancy way of saying they aren’t liquid enough to honor redemptions.
It appears Peter Schiff’s bank is the victim of a good ole fashioned bank run, the kind his recent crypto adversaries have suffered. However, it should be noted that Peter Schiff is the one reporting the bank has closed for those reasons.
Confusing matters, Schiff has noted that his bank has “enough cash and #gold for all depositors to be made whole.” We reached out to Schiff, but, as of press time, he has yet to respond.
Originally, a report surfaced from the Associated press back on July 1st that Schiff was fighting to keep his bank. The report stated that Puerto Rico’s Office of the Commissioner of Financial Institutions was after the bank for three reasons: “a lack of internal controls, a lack of compliance and a level of insolvency.” Moreover, the J5 agency’s (an international agency that monitors antimoney laundering compliance) investigation into the bank is separate from the investigation conducted by the Puerto Rican agency.
Schiff also claims he had a buyer lined up who would inject capital into the distressed bank. Why a buyer would need to inject capital if they have enough to offer redemptions is unclear. We reached out to comment, but have yet to hear from Schiff as of press time.
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Peter Schiff Blames Himself
In a rare out-of-character move for the typically self-assured Gold Bug, Peter Schiff put the blame on himself, sort off, for what’s happened.
When pressed by a user that his Twitter antics (among other things) led to regulators coming after him, Schiff replied, “Yes. I’m being punished for my political opinions. But I have a Constitutional right to express my opinions. The government has violated those rights by illegally going after me for expressing them.”
Of course, there is no proof that this is behind the investigations, just speculation. Schiff has given myriad reasons for his bank’s demise via Twitter, and, in sum, the reasons feel unintentionally a lot like a Gish gallop.
Despite the perhaps humility — depending on how you interpret it — it doesn’t appear like Schiff learned that lesson in time. Schiff had recently crowed about how right he was about Celsius losing its customers money. Sadly, it appears like Celsius customers he mocked, there is a good chance that Euro Pacific Bank customers will lose their money.
“…if the bank stays in receivership and I can’t convince regulators to live up to their initial support of the sale, then I think customers will lose access to their accounts and suffer needless losses.”
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The post Apparently, Peter Schiff Blames Himself For Bank Closing appeared first on CryptosRus.