Posted on 05/18/2023 9:20:06 AM PDT by CFW
On Wednesday, March 8 of this year, the holding company for the federally-insured Silvergate Bank announced it was winding down the bank. It had little choice but to do so. It was experiencing a bank run and had incinerated its reputation by focusing on deposits from crypto companies, including those majority-owned by indicted crypto kingpin, Sam Bankman-Fried.
According to testimony from the Chairman of the Federal Deposit Insurance Corporation (FDIC), Martin Gruenberg, before the Senate Banking Committee on March 28, “in the fourth quarter of 2022, Silvergate Bank experienced an outflow of deposits from digital asset customers that, combined with the FTX deposits, resulted in a 68 percent loss in deposits – from $11.9 billion in deposits to $3.8 billion.”
Silvergate Bank’s primary regulator was the San Francisco Fed.
Two days later, on Friday, March 10, Silicon Valley Bank was put into receivership at the FDIC following an unprecedented bank run that saw $42 billion in deposits leave the bank on just the day of March 9, with another $100 billion in deposits queued up to leave the next day – which would have represented the vast majority of its deposits taking flight in 48 hours. That testimony was delivered to the Senate Banking Committee on March 28 by the Vice President for Supervision at the Fed, Michael Barr.
Silicon Valley Bank’s primary regulator was also the San Francisco Fed.
(Excerpt) Read more at wallstreetonparade.com ...
Related article:
https://finance.yahoo.com/news/feds-logan-data-does-not-130142411.html
“Fed’s Logan: data does not yet show June pause is appropriate”
Only the little banks need worry.....
The rest are too big to fail and too big to jail. Privatize profits and publicize losses - it’s a can’t miss business plan for BofA, JP, Goldman, Wells Fargo, and Chase.
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