Silvergate failure: Elizabeth Warren, Mike Novogratz, 8 experts in quotes

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Blame Silvergate's collapse on risky crypto, Elizabeth Warren says - but others slam 'arsonist and firefighter' crackdowns. 10 top experts on what pushed the bank to fail.

"A single small bank fails and this vindicates a crackdown on an entire legal industry? What kind of completely bizzaro reasoning is that," Carter"The government also hastened the collapse of silvergate by launching investigations and legal attacks on them. They're the arsonist and the firefighter in one," he"FTX and it's criminal mastermind SBF kills off another major crypto institution.

"I've been concerned that when banks get involved with crypto, it spreads risk across the financial system, and it will be taxpayers and consumers who pay the price.""Silvergate's troubles are as much if not more about traditional banking risks — lack of diversification, maturity mismatches — as it is about its exposure to crypto,"Adam Cochran, a partner at venture capital firm CEHVCochran, who is active in DeFi projects.

"It failed because it followed the OCC rules for bank partial reserves, bought low liquidity Muni Bonds and then had a bank run."Dave Weisberger, CEO of crypto-trading platform CoinRoutes "The problems that faced Silvergate were primarily a result of less-than-adequate risk management, notably one of relying too much on volatile short-term deposits while lending or investing at a longer duration," Weisberger

"This is not like the collapse of FTX, where investors lost their deposits, but, rather, an orderly dissolution," he added.

 

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