The United States Department of Justice and Securities and Exchange Commission were investigating whether Signature Bank failed to prevent money laundering before the firm collapsed on Sunday.
DailyMail.com has reached out to the Department of Justice, SEC and Signature Bank for comment.
It comes after recently resurfaced videos show Signature Bank's executive team singing and dancing as they promoted the new financial institution in the early 2000s, with co-founder Scott Shay triumphantly declaring the bank would never 'diminish and fail'.
Former Rep. Barney Frank, who penned landmark legislation following the 2008 global recession to impose new regulations on the banking industry and who served on Signature Bank's board, has blamed the bank's failure on its dealings with cryptocurrency.
Officials with the New York Department of Financial Services - which first shut down the bank - said its decision was not based on the bank's crypto dealings.
Signature Bank collapsed on Sunday after just 22 years in business and was taken over by the Federal Deposit Insurance Corporation.
After the collapse of SVB Financial and Signature Bank, emergency measures by US authorities had soothed some worries about the health of the other banks, helping regional lenders stage a rebound in Tuesday's session.
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