San Francisco Federal Housing Loan Bank
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The Alleged Connection between FHLBank and Silvergate’s Voluntary Liquidation
According to reports, the San Francisco Federal Housing Loan Bank (FHLBank) provided $4.3 billion to Silvergate at the end of last year, and did not force Silvergate to repay the advance payment. This is rumored to be the reason why the cryptocurrency friendly bank entered voluntary liquidation. A spokesman for the bank said, “FHLBank San Francisco has not requested or forced Silvergate Bank to prepay its outstanding prepayment. Silvergate has decided to prepay the outstanding prepayment based on its own assessment of its own situation.” FHLBank: Silvergate did not stop lending Analysis based on this information:Reports have emerged stating that the San Francisco Federal Housing Loan Bank (FHLBank) provided Silvergate Bank with a $4.3 billion advance payment at the end of last year, without demanding repayment. This action is speculated to have triggered Silvergate’s decision to enter voluntary liquidation, which was announced recently. According to FHLBank, they did not request or pressure Silvergate to repay the advance payment, and the…
