Congrats taxpayers of America!
We’re all buying an insolvent crypto bank because someone said something to someone and look squirrel!
The story from Bloomberg via CoinDesk sums it up tonight:
Gee, here is my shocked face. Excerpt:
Federal Deposit Insurance Corp (FDIC) officials have been consulting with executives of troubled crypto-focused bank Silvergate Capital (SI) on how to keep the company in business, according to a report from Bloomberg, citing sources familiar with the matter.
One option may involve recruiting crypto industry investors to help boost Silvergate’s liquidity, according to one of Bloomberg’s sources.
FDIC examiners were authorized to go to Silvergate’s La Jolla, Calif. headquarters last week by the Federal Reserve, which is Silvergate’s main federal overseer, according to Bloomberg.
So instead of allowing normal capitalism to deal with this issue by getting rid of rampant speculation, the Federal Government once again via the FDIC will bail out the terminally stupid on the back of taxpayers.
Of course, some of the “crypto” partners know what is coming:
Ouch. Yet here are the moron taxpayers getting ready to bail another insolvent company out once again because geek lives matter.
Don’t believe me?
How many days did the Orange Dude from Countrywide or the CEO of Goldman Sachs serve in jail for what they did in 2005-2008?
Good times are back.