Posted on 01/05/2023 8:31:08 AM PST by Kaiser8408a
Silvergate!
Customers withdrew about $8.1 billion of digital-asset deposits from the bank during the fourth quarter, which forced it to sell securities and related derivatives at a loss of $718 million, according to a statement Thursday. Executives said on a conference call that Silvergate may become a takeover target.
The collapse of Sam Bankman-Fried’s FTX sparked a crisis for Silvergate, which held deposits for FTX units and Alameda Research, the trading firm at the heart of the crypto exchange’s downfall. Lawmakers are also scrutinizing the bank.
Silvergate plunged 44% to $12.34 at 9:48 a.m. in New York, the steepest decline since the La Jolla, California-based company went public in November 2019. The stock is down 91% in the past 12 months. Signature Bank, which said in December that it intended to shed as much as $10 billion deposits from digital-asset clients, fell 5.8% to $111.05.
Silvergate Capital Corporation operates as a bank holding company. The Company, through its subsidiary Silvergate Bank provides a banking platform for innovators, especially in the digital currency industry, and developing product and service solutions addressing the needs of entrepreneurs. Silvergate Capital serves customers in the United States.
Silvergate once saw the crypto industry as giving it a huge growth opportunity. Over the course of a decade, it transformed itself from a firm catering to small businesses into a publicly traded company known for providing banking services to major crypto clients such as Coinbase Global Inc. and Gemini Trust Co. — as well as FTX and Alameda Research.
At least Solana is on the rise.
Sam Bankman-Fried will go down in history as commiting one of the greatest financial frauds in world history. Why did he have four meetings with Biden’s top staffers prior to FTX’s crash and burn?
(Excerpt) Read more at confoundedinterest.net ...
“BIDEN IS CORRUPT!!!”
You’re sharp. :)
“Why did Biden’s top people have 4 meetings with fraudster Sam Bankman-Fried just prior to FTX collapse?? “
To ensure Sam does not flip on the Bidens and other USA Oligarchs.
“Fed Tightening Making Matters Worse”
Worse for who? The poor, oppressed downtrodden bankers???
Cry me a river.
BIDEN IS CORRUPT
Now you know why he lies all the time for the last 50 years.
Good post.
What folks do not understand is that crypto speculation damages the entire economy—because it creates wild speculation in the economy where everything is fungible.
If relatively “safe” banks or other entities “invest” in crypto or crypto based firms they add substantial risk to their operations—and if they fail they can drag down others with them.
Crypto is like spreading bottles of nitroglycerin throughout a building.
Individually they may not damage the building, but if one bottle sets off another which sets off another then we start to have a real problem.
Cryptocurrencies accomplish one thing and that is to remove money from the economy. People buy cryptos because they seem to have no limit to profitability and then the cryptos get “accidentally” deleted and the money leaves the economy. It’s a sink for excess wealth. A third form of taxation. Horse races are a better investment. Lottery tickets. At least then you know what the value of your assets is.
Cryptocurrencies are entirely electronic. I have been working with computers since 1 megahertz 8 bit and punch cards. I cannot imagine buying a string of bits no matter how long or complex. They are only good until the power goes off. Somehow some people managed to convince a lot of other people that they could make money on the internet by buying unique strings of bits. Take any photo image file and convert it to ASCII and you will get a very complex string of bits.
Yep, when bankers “invest” in crypto, they are not just lighting their own money on fire by sinking it into a Ponzi scheme, they are lighting other people’s money on fire.
This is leaving aside the other point that the only reason we’ve been at zero interest rates for the last decade and a half is because of government collusion with the banks to protect the banks from the previous consequences of their own incompetent speculations, to the detriment of consumers and private investors whose interests the politicians are actually supposed to be representing.
Right—the issue with banks is “moral hazard”—where they play a game where heads they win and tails we lose.
Obviously such a system rewards those who “invest” in the most speculative instruments allowable since they have the greatest chance of winning the most and they don’t have to worry about the losses.
Anyone who doubts this should give gambling money to a friend, send them to a casino, and tell them that they get to keep any winnings and you will reimburse any losses. They will head straight to the multi million dollar payoff slot machine—and lose all of your money!
Why 4 meetings? He didn’t get the hints until the horse’s head showed up in his bed.
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