[{"category":{"name":"Trending News","exported_url":"trending-news"},"id":"6d946210-f49d-4edd-86ce-8ca2bdc1e227","updated_at":"2023-05-12T04:50:11.845624+00:00","account":{"firstName":"Mason","lastName":"Thompson"},"description":"The parent company of the now-defunct Silvergate Bank disclosed significant staff cuts and the delisting of its securities in a filing with the U.S. Securities and Exchange Commission (SEC).","sapo":"In an SEC filing, the parent company of the now-closed Silvergate Bank revealed substantial workforce reductions and the removal of its securities from the listing.","title":"Silvergate Starts NYSE Delisting, Plans 230 Layoffs","content":"

Silvergate Capital announced that the parent company of the failed Silvergate Bank will be removed from the New York Stock Exchange, and 230 employees will be laid off.

On May 11, Silvergate Capital submitted a filing to the U.S. Securities and Exchange Commission stating that 230 employees would be "separated" beginning May 12. Additionally, the NYSE halted trading in its stock and plans to initiate the delisting process "soon."

Silvergate Capital's share price has dropped nearly 93% since 2023 began

Figure 01. Silvergate Capital's share price has dropped nearly 93% since 2023 began. Source: Google Finance

Following the workforce reduction, "around 80 officers and employees" will remain to carry out the liquidation process for Silvergate Bank.

Further reductions are expected, with at least three additional rounds of staff cuts scheduled for June 30, August 30, and November 30 "or later," according to the filing.

Silvergate projected that the expenses related to staff reduction, including severance, retention and bonus payments, as well as job placement programs, would amount to approximately $13.6 million.

No Financial Updates Currently

In another SEC filing on May 11, Silvergate stated its inability to submit legally mandated financial reports for the 2022 fiscal year and the first quarter of 2023. Furthermore, the company anticipates being unable to file similar reports in the future.

The company attributed the difficulties to ongoing regulatory investigations, legal liabilities, and the bank's liquidation process, which it referred to as "challenges" in the filing.

***1656654490731450368***

Silvergate concluded that reducing costs and expenses is in the best interests of stakeholders in order to safeguard value. The company mentioned that some of the staff members to be laid off include those who play a critical role in preparing these filings.

Silvergate Capital made an initial announcement on March 8, stating its voluntary decision to initiate the liquidation process for Silvergate Bank.

Just before this, several cryptocurrency companies, such as Gemini, Coinbase, Galaxy Digital, and BitStamp, ended their partnerships with the bank due to an ongoing Justice Department investigation regarding its alleged involvement in the downfall of FTX.

","tags":[{"tag":{"tag":"Silvergate Bank","id_tag":"silvergate-bank"}},{"tag":{"tag":"NYSE","id_tag":"nyse"}},{"tag":{"tag":"Banks","id_tag":"banks"}},{"tag":{"tag":"United States","id_tag":"united-states"}}],"image":{"fileName":"Starts NYSE Delisting (1) 1.png"}}]

Silvergate Starts NYSE Delisting, Plans 230 Layoffs

Related topics

Related post