A year on from the US regional banking crisis, what’s changed?
It was almost exactly one year ago when Silvergate Bank — a small bank located in La Jolla, California, known for working with various cryptocurrency companies, including FTX — let regulators, investors, and customers know that after a run on deposits over the course of several months, it would be throwing in the towel and shutting down. The closure represented a drastic downturn in fortunes for Silvergate, which had become the preeminent bank for crypto companies and had grown significantly since its founding in 1988. Briefly, the bank’s shares valued the company at about $7 billion — today, pink sheet shares value Silvergate at $10 million. But Silvergate was only the beginning of the regional banking crisis and it actually turned out to be the easiest and simplest to clean up. As is becoming more and more clear by the day, the regional banking crisis of 2023 didn’t end when the calendar year turned over. Banks that bought up crypto banks struggle in 2024 Read...