Helene Braun Helene is a U.S. markets reporter at CoinDesk, covering the US
economy, the Fed, and
Bitcoin. She is a recent graduate of
New York University's business and economic reporting program. Follow @ HeleneBraunn on
Twitter The Federal Home Loan Bank of San Francisco, the bank that supplied $4.3 billion to Silvergate Bank late last year, didn't force Silvergate to repay advances, which had been rumored to be the reason why crypto-focused Silvergate decided to shut down, the FHLB said Wednesday. “FHLBank San Francisco did not request or compel Silvergate Bank to prepay its outstanding advances,” a spokesperson for the bank told CoinDesk. “Silvergate made their determination to prepay their outstanding advances based on their own assessment of their position.” Silvergate Capital (SI) disclosed in a securities filing on March 1 that it had to accelerate sales of securities to raise money to repay advances from the Federal Home Loan Bank of San Francisco. It fully repaid these loans by the start of this month. Some in the crypto industry have speculated that the early repayment ultimately triggered the bank run on Silvergate. Silvergate’s stock price tanked a day after the company made the disclosure, and it announced it would suspend operations and voluntarily liquidate a few days later. “We can't speculate as to what went into their final decision to prepay; however, the existing tenure of their remaining advances before the prepayment was short term,” the spokesperson said. The spokesperson said that the FHLBank could require prepayment if the bank it’s loaning to experiences a “material adverse change,” but that didn't happen with Silvergate. “Again, we did not request or compel Silvergate Bank to prepay its outstanding advances. We would assume that any prudent borrower in their position would assess their own position and upcoming disclosures and make their own decisions about what was in their best interest in terms of all of their assets and liabilities,” a statement from FHLBank said. Silvergate didn't immediately respond to a request for comment. UPDATE (March 15, 2023 18:30 UTC): Adds last paragraph. DISCLOSURE Please note that our privacy policy , terms of use , cookies , and do not sell my personal information has been updated . The leader in news and information on
cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups . As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights , which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG . Helene Braun Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program. Follow @ HeleneBraunn on Twitter Learn more about Consensus 2023 , CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now. Helene Braun Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program. Follow @ HeleneBraunn on Twitter