{"id":536434,"date":"2023-01-07T00:30:00","date_gmt":"2023-01-06T21:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/silvergate-gets-more-bad-news-as-moodys-slashes-its-ratings\/"},"modified":"2023-01-07T00:30:00","modified_gmt":"2023-01-06T21:30:00","slug":"silvergate-gets-more-bad-news-as-moodys-slashes-its-ratings","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/silvergate-gets-more-bad-news-as-moodys-slashes-its-ratings\/","title":{"rendered":"# Silvergate gets more bad news as Moody\u2019s slashes its ratings"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a38c3ccb62d0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a38c3ccb62d0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/silvergate-gets-more-bad-news-as-moodys-slashes-its-ratings\/#%E2%80%9D_Silvergate_gets_more_bad_news_as_Moodys_slashes_its_ratings_%E2%80%9C\" >&#8221; Silvergate gets more bad news as Moody\u2019s slashes its ratings &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Silvergate_gets_more_bad_news_as_Moodys_slashes_its_ratings_%E2%80%9C\"><\/span>&#8221; Silvergate gets more bad news as Moody\u2019s slashes its ratings &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvMDU4ODJjMTEtMjkwZC00ZDViLTk2YjAtMjU3NjlhMmRiNGNkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-6ed77c39>Things seem to be going from grim to grimmer at Silvergate Bank, with a hit to its Moody\u2019s rating and a selloff by Ark Invest. The bank already experienced a run and has been tied to the FTX collapse.<\/p>\n<p>Ark Invest, the investment vehicle of Cathy Wood, sold off more than 400,000 shares of parent company Silvergate Capital, worth $4.3 million on Jan. 6, leaving it with a mere 4,000 shares, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/news\/ark-fund-unloads-silvergate-stake-131252888.html\">according <\/a>to various <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> reports. Those shares lost 43% of their value the previous day.<\/p>\n<p>Moody\u2019s Investors Service also reacted to the situation at the bank, downgrading its ratings of Silvergate Capital and the bank. The bank&#8217;s long-term deposit rating was downgraded from Baa2 (\u201clower-medium grade\u201d) to Ba1 (\u201cjunk\u201d) and its long-term issuer rating from Ba2 to B1 (both \u201cjunk\u201d), with a negative outlook for the both organizations. <\/p>\n<p><strong><em>Related: Block.one and its CEO become largest SilvergateCapital shareholders<\/em><\/strong><\/p>\n<p>Moody\u2019s attributed its decision to falling deposits, losses from securities sales to meet liquidity needs and workforce layoffs. Moody\u2019s vice president Sadia Nabi said in a statement:<\/p>\n<blockquote><p>\u201cAlmost all of the bank&#8217;s deposits continue to be from crypto currency centric institutions, and while the bank currently has adequate liquidity and capital, continued large outf[l]ows of these deposits would further adversely impact the bank&#8217;s f[i]nancial condition.\u201d\u00a0<\/p><\/blockquote>\n<p>Silvergate Bank lost $718 million as it liquidated debt to cover $8.1 billion in withdrawals, according to reports on Jan. 5. It also laid off 40% of its workforce, about 200 people. In addition, crypto-related deposits were down 68% in the fourth quarter of 2022. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">&#8220;Moody&#8217;s downgrades Silvergate Bank&#8217;s long term deposit rating to Ba1, outlook negative&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MoodysInvSvc?ref_src=twsrc%5Etfw\">@MoodysInvSvc<\/a>  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24SI&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$SI<\/a><\/p>\n<p>\u2014 Richard Christopher Whalen (@rcwhalen) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rcwhalen\/status\/1611380733674676224?ref_src=twsrc%5Etfw\">January 6, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The bank had come under the scrutiny of legislators after allegations that it facilitated transfers between FTX and its sister-company Alameda Research. Three senators headed by Senator Elizabeth Warren sent a letter to Silvergate CEO Alan Lane Dec. 6 asking for an explanation of the allegations. On Dec 16, FTX investors filed a class action suit against Lane, the bank and Silvergate Capital over the same allegations. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/silvergate-gets-more-bad-news-as-moody-s-slashes-its-ratings\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Silvergate gets more bad news as Moody\u2019s slashes its ratings &#8220; Things seem to be going from grim to grimmer at Silvergate Bank, with a hit to its Moody\u2019s rating and a selloff by Ark Invest. The bank already experienced a run and has been tied to the FTX collapse. Ark Invest, the investment&#8230;<\/p>\n","protected":false},"author":1,"featured_media":536435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/05882c11-290d-4d5b-96b0-25769a2db4cd.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[107545,117],"class_list":["post-536434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-liquidity","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=536434"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/536435"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=536434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=536434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=536434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}