Caitlin Long says the Fed assassinated Silvergate, and that triggered the SVB and Signature collapses
Alan Lane published his first public account of Silvergate’s wind-down this week, though as she points out he’s legally barred from telling the full story, since disclosing confidential supervisory information is illegal for a banker. Her charge is that regulators weaponised a rule designed to protect banks from runs, using it to keep executives quiet about what was done to them. Her own account came from a service provider who was in the room and no longer owed Silvergate confidentiality once it collapsed. The timeline she points to is tight. Silvergate announced its liquidation, SVB ran the next day, and Signature failed two days after that.
Worth noting the Fed’s Inspector General and the SEC reached different conclusions, citing crypto deposit concentration, governance weaknesses and AML failures, so this remains contested.
#Silvergate #Bitcoin #Crypto #Fed #Banking
Powered by WPeMatico
