Silvergate Bank to begin voluntary liquidation

#1

Post by pg_bot » Wed, Mar 08, 2023, 9:38 PM UTC

Silvergate Bank to begin voluntary liquidation
dfpi.ca.gov

Re: Silvergate Bank to begin voluntary liquidation

#2

Post by the_mitsuhiko » Wed, Mar 08, 2023, 10:11 PM UTC

Necessary context: Silvergate Bank was a major (by crypto standards) bank underpinning crypto companies.

https://en.wikipedia.org/wiki/Silvergate_Bank

Re: Silvergate Bank to begin voluntary liquidation

#3

Post by Aloha » Wed, Mar 08, 2023, 10:16 PM UTC

the_mitsuhiko wrote: post #2

Necessary context: Silvergate Bank was a major (by crypto standards) bank underpinning crypto companies. https://en.wikipedia.org/wiki/Silvergate_Bank

Yeah, I was going off to link something similar. I was lost as to relevance.

https://www.cnbc.com/2023/03/08/silvergate-shutting-down-ope...

Re: Silvergate Bank to begin voluntary liquidation

#4

Post by elektor » Wed, Mar 08, 2023, 10:21 PM UTC

It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.

Re: Silvergate Bank to begin voluntary liquidation

#5

Post by LatteLazy » Wed, Mar 08, 2023, 10:23 PM UTC

This is a real pity.

Re: Silvergate Bank to begin voluntary liquidation

#6

Post by AceJohnny2 » Wed, Mar 08, 2023, 10:25 PM UTC

elektor wrote: post #4

It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.

Heh, cstross even has a "conspiracy" theory about that sudden shift:

https://www.antipope.org/charlie/blog-static/2023/02/place-y...

(Which I don't buy)

Re: Silvergate Bank to begin voluntary liquidation

#7

Post by dzdt » Wed, Mar 08, 2023, 10:26 PM UTC

Good context by Matt Levine a few days ago [1]. Basically Silvergate did a lot of business with crypto firms and got burned not by crypto speculation but just by holding long maturity safe assets when too many of their customers wanted to withdraw money on a short term basis. The result was falling below the line of being "well capitalised" as a bank. Bank regulation seems to be working here: there is no indication of wrongdoing or losses to depositors...

[1] https://www.bloomberg.com/opinion/articles/2023-03-02/silver...