Signature Bank CEO Joe DePaolo Will Be Replaced by COO Eric Howell Following Transition Period

The move isn't a surprise and shouldn't change the bank's crypto commitment, Wells Fargo analyst said.

AccessTimeIconFeb 16, 2023 at 12:14 p.m. UTC
Updated May 9, 2023 at 4:08 a.m. UTC

Joe DePaolo is stepping down as president of crypto-friendly Signature Bank (SBNY) and will be succeeded by Chief Operating Officer Eric Howell as of March 1.

After DePaolo completes his transition into an advisory role, Howell will also be named as CEO, the bank said. Until then, DePaolo retains the CEO role and his seat on the board. It is unclear how long the transitionary period will last. Signature Bank did not immediately respond to CoinDesk's request for further comment.

  • U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement; Gensler Speaks on Ether ETF Approval
    01:41
    U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement; Gensler Speaks on Ether ETF Approval
  • Why Bitcoin Is Not Keeping Pace With Nasdaq
    01:11
    Why Bitcoin Is Not Keeping Pace With Nasdaq
  • Mona Founder on Future of the Metaverse
    09:08
    Mona Founder on Future of the Metaverse
  • Fed Sees Just One Rate Cut This Year; CRV Slides as Curve’s Founder Faces Liquidation Risk
    01:49
    Fed Sees Just One Rate Cut This Year; CRV Slides as Curve’s Founder Faces Liquidation Risk
  • DePaolo’s departure comes as Signature Bank continues to grapple with the fallout of crypto exchange FTX, which the bank was involved with, but likely not linked to the resignation, according to Wells Fargo analyst Jared Shaw.

    “This is not a surprise at all, it was in process for a while,” Shaw told CoinDesk. “I feel very confident this has nothing to do with any issue or concern.”

    While the new CEO Howell isn’t particularly known to push the bank’s crypto strategy forward, his replacement isn't a sign that Signature is stepping away from the industry, Shaw said.

    “He’s probably not been the driving force behind crypto [...] I don't think that anyone should read into that that they're not committed to staying in crypto,” he said. “I think it is still a commitment but as we saw this past quarter, they don't want to have a concentration risk with it from the deposit side.”

    Under DePaolo's leadership, Signature's Nasdaq-listed shares soared as high as $344.89 a year ago amid the last crypto bull market. By the end of 2022, following the collapse in cryptocurrency valuations and the onset of the crypto winter, the stock had lost 66% of its value, closing 2022 around $113. This year, they've gained about 18%, rising alongside the crypto market. At the time of writing, SBNY shares are down 3.6% to $130 in pre-market trading.

    The bank has been attempting to reduce its involvement in digital assets following the market downturn that started last year and came to a head with the collapse of crypto exchange FTX in November.

    Signature said it would be shrinking its deposits tied to cryptocurrencies by $8 billion to $10 billion in December. Last month, Binance said Signature would no longer handle transactions of less than $100,000 for crypto exchange customers.

    UPDATE (Feb. 16, 2023, 12:35 UTC): Updates headline, adds further details and background.

    UPDATE (Feb. 16, 2023, 12:15 UTC): Adds additional details.

    UPDATE (Feb. 16, 2023, 14:15 UTC): Adds info on SBNY share price movements

    UPDATE (Feb. 16, 2023, 18:33 UTC): Adds comment by Wells Fargo analyst Jared Shaw.



    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.

    Helene Braun

    Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.


    Read more about