Silvergate Ex-CEO Blames Biden Pressure for Bank's 2023 Wind-Down
Silvergate Bank's former CEO Alan Lane has spoken out about the bank's decision to wind down operations in 2023, attributing it to pressure from the Biden administration. In an inaugural Substack post, Lane claimed that the bank remained solvent after weathering a deposit run, but ultimately chose liquidation 'in the face of political pressure.' He alleged that the administration launched a 'coordinated attack' on the bank.
Lane's account differs from federal findings, which attributed Silvergate's demise to its concentrated deposit base, funding risks, and weaknesses in governance and compliance. Regulators pointed out significant failures in risk management and corporate governance.
The former CEO also cited interagency crypto-risk statements issued in early 2023 as evidence of pressure against the industry. Although these statements were later withdrawn, Lane argued that they demonstrated a coordinated effort to restrict access to banking for crypto companies.