|
|
|
|
|
|
by JumpCrisscross
1191 days ago
|
|
|
> that's not why the bank was shuttered. It was shuttered for the same reason SVB and Silvergate were closed Silvergate was significantly impaired by the crypto blow-ups [1]. That forced them to sell their short-duration, liquid holdings. It also started their stock-price slide [2]. The combination put them in a uniquely vulnerable and continuously degrading position. Signature wasn't as badly hit by the blow-up, but its stock started sliding with Silvergate. Perceptions matter, and when Silvergate folded, non-crypto depositors began pulling money from Signature. Had Signature not banked crypto, or been publicly affiliated with it, they would have likely survived. [1] https://www.bloomberg.com/news/newsletters/2023-03-09/silver... [2] https://www.barrons.com/articles/crypto-silvergate-signature... |
|
|