{"id":46389,"date":"2023-03-08T17:54:20","date_gmt":"2023-03-08T21:54:20","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=46389"},"modified":"2023-03-08T17:54:24","modified_gmt":"2023-03-08T21:54:24","slug":"silvergate-seeks-assistance-from-us-congress-agency","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/silvergate-seeks-assistance-from-us-congress-agency\/","title":{"rendered":"Silvergate Seeks Assistance From US Congress Agency"},"content":{"rendered":"\n

Silvergate Capital is in discussions with the US FDIC to receive advice on how to stay afloat as its financial problems <\/a>get worse.<\/p>\n\n\n\n

\"Silvergate
Silvergate Seeks Assistance From US Congress Agency<\/figcaption><\/figure>\n\n\n\n

One of the many victims of Sam Bankman-Fried's FTX exchange<\/a> collapse, Silvergate Capital, recently met with FDIC representatives at its California headquarters to discuss methods to overcome its escalating financial difficulties and prevent going bankrupt.<\/p>\n\n\n\n

According to individuals familiar with the situation, the examiners, whom the Federal Reserve approved to conduct the exercise, have hinted that one of the potential solutions the company could take to address its financial issues is to get well-known crypto market players to invest in Silvergate.<\/p>\n\n\n\n

If that fails, insiders say the FDIC might takeover Silvergate through a receivership arrangement and possibly merge it with a more viable lender. But no choice has been made as of yet.<\/p>\n\n\n\n

The rapid collapse of FTX and its sister business Alameda last year is one of the key sources of Silvergate's financial troubles\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, as the latter had tight relationships with both companies. <\/p>\n\n\n\n

In the face of a barrage of litigation and a bank run brought on by the demise of FTX, Silvergate had no choice but to lay off staff and sell off its assets at a loss in order to stay afloat.<\/p>\n\n\n\n

In January, the troubled lender reported a $949 million loss in its Q4 filing with the US Securities and Exchange Commission <\/a>(SEC), with the business announcing the suspension of its Series A stock dividend payouts to investors as part of attempts to conserve capital.<\/p>\n\n\n\n

The ongoing probes by US authorities into Silvergate Capital's business practices have made the bank's problem worse. At the time of writing, Silvergate Capital's stock price, which is currently trading for $5.13, is down a staggering 69.83% year to date.<\/p>\n\n\n\n

The lender has so far lost the business of many cryptocurrency market players, including Coinbase and Circle, who previously transacted with Silvergate. It is still to be seen whether the business will succeed in overcoming its never-ending difficulties.<\/p>\n","protected":false},"excerpt":{"rendered":"

Silvergate Capital is in discussions with the US FDIC to receive advice on how to stay afloat as its financial problems get worse. One of the many victims of Sam Bankman-Fried’s FTX exchange collapse, Silvergate Capital, recently met with FDIC representatives at its California headquarters to discuss methods to overcome its escalating financial difficulties and […]<\/p>\n","protected":false},"author":43,"featured_media":46392,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[5789,4301,1305],"class_list":["post-46389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-united-states-2","tag-fdic","tag-united-states"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/03\/croc_1678306858477.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=46389"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/46392"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=46389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=46389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=46389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}