Silvergate ex-CEO blames Biden pressure for bank’s 2023 wind-down
Alan Lane said a “coordinated attack” by the Biden administration made Silvergate’s continued operation untenable and prompted its liquidation.
Alan Lane said a “coordinated attack” by the Biden administration made Silvergate’s continued operation untenable and prompted its liquidation.
Former Silvergate Bank CEO Alan Lane said political and regulatory pressure from the Biden administration drove the crypto-focused lender’s voluntary wind-down in 2023, arguing that the bank remained solvent after weathering a deposit run.
In an inaugural Substack post on Tuesday, Lane said Silvergate could have continued operating after satisfying withdrawals equivalent to 70% of its demand deposits during the fourth quarter of 2022. He argued that a “coordinated attack by the Biden Administration” ultimately led to the wind-down, saying the bank chose liquidation “in the face of political pressure.”
A September 2023 review by the Federal Reserve Board’s Office of Inspector General said Silvergate’s dependence on crypto depositors, rapid growth and multilayered funding risks led to its liquidation. It also cited significant weaknesses in corporate governance and risk management and said examiners could have acted more aggressively and decisively.