Unfortunate financial services company Silvergate Capital (NYSE: SI) suffered both indignities this week. It probably goes nearly without saying that Silvergate's downgrade and the unwanted political attention stem from the potential fallout of the FTX collapse. Monday morning before market open, Morgan Stanley analyst Manank Gosalia dropped his recommendation one peg to underweight (sell, in other words) from his previous equalweight (neutral), citing the "ongoing stress in the crypto ecosystem" due to FTX's swoon.
(Bloomberg) -- Silvergate Capital Corp. was dealing with the same problem many small US banks face: How do you differentiate yourself when larger competitors do everything you do, only better?Most Read from BloombergPutin Says Russia May Add Nuclear First Strike to StrategyHarry and Meghan Throw the Gauntlet to William and KateCeline Dion Brings Attention to Stiff Person Syndrome: Here’s What It IsThe Harry and Meghan Show Is a Royal KnockoutStocks Suffer Late-Day Swoon as Traders Shun Risk: Mar
At a recent conference, executives from Signature Bank (NASDAQ: SBNY) announced that they are planning to wind down a large chunk of the bank's digital asset-associated deposits in the wake of the FTX debacle, which has shaken the entire crypto industry. Signature Bank is one of the few U.S. banks currently serving crypto exchanges and clients. In return for using the payments platform, which is called Signet, clients bring large sums of non-interest-bearing deposits to the bank, which Signature pays no interest on.