Federal Reserve Announces Consent Order against Silvergate Bank: "Silvergate shall continue to fully cooperate with DFPI’s ongoing investigation into Silvergate’s relationship with FTX/Alameda and SEN transactions."
https://www.federalreserve.gov/newsevents/pressreleases/files/enf20230601a1.pdf
Interesting, FTX/Alameda called out as the trigger:
Effective immediately, the Company and the Bank shall not declare or pay dividends, engage in share repurchases, or make any other capital distribution in respect of common shares, preferred shares, or other capital instruments, including, without limitation, any interest payments due on subordinated debentures or trust preferred securities, without the prior written approval of the Supervisors and the Director of Supervision and Regulation of the Board of Governors:
Effective immediately, the Company and the Bank shall preserve their respective cash assets and shall not dissipate those assets, including with respect to executive compensation and severance payments...
Officer and Director Approval and Golden Parachutes
TLDRS:
- Federal Reserve Announces Consent Order against Silvergate Bank
- "Within 10 days of this Order, the Company and the Bank shall submit a plan acceptable to the Supervisors that provides for the implementation of the Bank’s voluntary decision to self-liquidate & the orderly wind down of its operations"
- "Silvergate shall continue to fully cooperate with DFPI’s ongoing investigation into Silvergate’s relationship with FTX/Alameda and SEN transactions."
