Silvergate Talks with FDIC to Save Crypto-Focused Bank: Bloomberg

• FDIC officials have been consulting with Silvergate Capital executives to help keep the company in business.
• One option for boosting liquidity may involve recruiting crypto industry investors.
• Last week, FDIC examiners were authorized to visit Silvergate’s headquarters by the Federal Reserve.

FDIC Meets with Silvergate Executives

Federal Deposit Insurance Corp (FDIC) officials have been consulting with executives of troubled crypto-focused bank Silvergate Capital (SI) on how to keep the company in business, according to a report from Bloomberg, citing sources familiar with the matter.

Options for Boosting Liquidity

One option may involve recruiting crypto industry investors to help boost Silvergate’s liquidity, according to one of Bloomberg’s sources. The FDIC did not immediately return a request for comment. Silvergate shares were rising 2.5% to $5.34 in after-hours trading on Tuesday.

Delay in Annual Report Filing

Silvergate announced last week it would delay the filing of its annual report because it needed to answer requests from its independent auditors and accounting firm, in addition to pending regulatory and other inquiries and investigations. The company further warned that its ability to remain as a going concern was “in doubt”.

Authorization from Federal Reserve

FDIC examiners were authorized to go to Silvergate’s La Jolla, California, headquarters last week by the Federal Reserve, which is Silvergate’s main federal overseer, according