Silvergate ex-CEO blames political pressure for bank's 2023 liquidation

Alan Lane, former chief executive of Silvergate Bank, stated in a recent Substack post that political and regulatory pressure from the Biden administration forced the bank's voluntary wind-down in 2023. Lane argued the lender remained solvent after meeting withdrawals representing approximately 70% of demand deposits during the fourth quarter of 2022. The bank reported digital asset deposits fell 68%, declining from $11.9 billion to $3.8 billion that same period. Silvergate sold $5.2 billion in debt securities, resulting in a $718 million loss, while holding $4.6 billion in cash and equivalents at year-end. Lane claimed the institution could have continued operations despite the financial headwinds. This account differs from federal findings attributing the liquidation to concentrated deposit bases, funding risks, and weaknesses in governance and compliance. A September 2023 review by the Federal Reserve Board's Office of Inspector Genital cited risk management and compliance failures as primary causes for the bank's closure.