.silvergatebank leaned on a Depression-era act to satisfy customer withdrawals, and that might be a pretty big deal. gckaloudis writes for Crypto Long & Short.
. So, yes, part of the crypto industry was effectively bailed out by a government-sponsored institution whose stated goal is to curtail housing costs.
Of course, this isn’t illegal – else you’d be hearing about it from literally everyone but me. The FHLB is also tasked with providing “liquidity for members’ short-term needs” – and the 70% withdrawal I mentioned above sure seems like a time when liquidity might be needed! Plus, FHLB supports members who support housing finance and community investment .But just because it’s not illegal doesn’t mean that we should be happy with it.
Not to mention, FHLB advances work such that in the event of a bank failure, it is senior even to the Federal Depository Insurance Corporation’s claims. Why is that important? As, hypothetically “if regulators were to shut down Silvergate or a similar bank that facilitates crypto and owes a Home Loan bank money, the failure could prove more costly to the [FDIC’s] Deposit Insurance Fund.
minutes of the Federal Open Market Committee . Sure, it’s still small potatoes: Bank deposits in the U.S. number in the tens of trillions of dollars, dwarfing Silvergate. But we should expect more from the banking institutions that service crypto companies. If crypto was born to be separate from the legacy institutions, then it shouldn’t depend on those institutions in times of need.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Crypto Ban Proposed by Bank of International Settlements as Regulatory ApproachTo ban, to contain, to regulate: Three approaches suggested by BIS to prevent 2022 collapse from happening again
Les mer »
India’s Central Bank Head Calls for Blanket Ban on CryptoRBI governor Shaktikanta Das remains highly skeptical of cryptocurrencies
Les mer »
Attempted bank robber caught after leaving phone at bank, police sayAn attempted bank robber in Florida was arrested after she left her phone at the bank, allowing police to learn her identity, officials said.
Les mer »
Bank of America profits rise; bank warns of slowing economyBank of America says its fourth-quarter profits rose slightly from a year ago, as higher credit costs and potentially bad loans more than offset a sharp rise in interest revenue.
Les mer »
Chargers QB Justin Herbert primed for his playoff debutHerbert will not have wide receiver Mike Williams, who has been ruled out for Saturday’s AFC wild-card game in Jacksonville because of a back injury
Les mer »
Perspective | In an age of QB brilliance, there’s no one quite like Justin HerbertPerspective: Justin Herbert has all-world talent, implausible toughness — and the power of invisibility.
Les mer »