The Federal Reserve Board announced a consent order against Silvergate Capital Corporation and its subsidiary Silvergate Bank on Thursday, providing the necessary regulatory supervision for the financial institution’s voluntary self-liquidation. Silvergate initially announced this drastic action plan on March 8, 2023.
Silvergate Capital Corporation and Silvergate Bank, both headquartered in La Jolla, California, are now directed to follow their previously announced self-liquidation plan under the close supervision of the Federal Reserve. The principal intent of the Board’s order is to ensure the preservation of the Deposit Insurance Fund and to protect the rights of the bank’s depositors during the self-liquidation process.
Under the consent order, Silvergate is expressly prohibited from carrying out certain financial activities without prior regulatory approval. These activities include making capital distributions and the…
