Silvergate In Talks to Salvage Bank

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Last Updated on March 8, 2023 by Bitfinsider

Silvergate Capital Corp.’s headquarters have been visited by US authorities as the troubled crypto-friendly bank seeks a means to remain in business.

According to individuals familiar with the situation, FDIC officials have been discussing with management methods to prevent a shutdown. According to one of the individuals, one potential possibility is to gather crypto-industry investors to help Silvergate firm up its solvency. According to the people, FDIC inspectors appeared at the firm’s La Jolla, California, offices last week.

The lender hasn’t made a choice on how to deal with its escalating financial problems, according to the individuals, who requested not to be identified because they were talking internal deliberations. According to one of the individuals, FDIC inspectors were allowed to visit the bank’s offices by the Government Reserve, which is the lender’s primary federal overseer.

A Silvergate representative did not return phone or e-mail inquiries requesting comment. According to the FDIC, it does not remark on “open and operating organizations.”

The FDIC’s participation is the newest indication of the gravity of Silvergate’s problems. Last week, the company stated that mounting losses may cause it to reconsider its survival. Because the government insures the lender’s customer deposits, the regulator could play a significant part in any possible answer.

The participation of the Fed and FDIC does not preclude the bank from eventually navigating its difficulties without the assistance of authorities.

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