• September 22, 2024

Silvergate Bank's Closure Linked to Regulatory Changes and Financial Losses

According to BlockBeats, on September 23, in a new bankruptcy filing, executives responsible for winding down the crypto-friendly Silvergate Bank's parent company stated that despite the contraction in the cryptocurrency industry and rising interest rates, the bank was stable, able to meet regulatory capital requirements, and capable of continuing to serve customers who retained deposits.However, in 2023, sudden regulatory changes by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) clearly indicated that, at least in the first quarter of 2023, these agencies would no longer tolerate banks with a significant number of digital asset customers. This ultimately prevented Silvergate Bank from continuing its digital asset-focused business model.Elaine Hetrick, Chief Administrative Officer of Silvergate Capital Corporation, provided a timeline in the bankruptcy filing that led to the closure of Silvergate Bank on March 8, 2023. This date was two days before the closure of Silicon Valley Bank and four days before Signature Bank was taken over by regulators.The document also revealed that Silvergate's consolidated operations reported a net loss of $948.7 million for the year ending December 31, 2022, compared to a net income of $75.5 million for the year ending December 31, 2021. This loss was primarily due to the sale of long-term securities amid rising interest rates.

  • September 22, 2024

U.S. Inflation Expected to Stabilize by Late 2025 or Early 2026, Says Economist

According to BlockBeats, on September 23, NerdWallet Senior Economist Elizabeth Renter stated that if everything goes as planned, U.S. inflation data will continue to slow down. She anticipates that inflation will stabilize at the Federal Reserve's target level by the end of next year or early 2026. Renter expressed hope that this process will not lead to a severe economic recession.