Unchained How Will the FTX Collapse Affect Silvergate? A Bear and a Bull Debate - Ep. 431
Dec 13, 2022
Ram Ahluwalia, CEO of Lumida, and Marc Cohodes, a former hedge fund manager, engage in a fiery debate about Silvergate Bank's future amid scrutiny following the FTX collapse. They discuss Silvergate's crucial role in crypto finance and whether it runs adequate compliance practices. Marc argues that Silvergate's involvement was complicit, while Ram defends it as different from past banking failures. They explore the bank's potential $1 billion hole and forecast regulatory actions, raising vital questions about the intersection of banking and cryptocurrency.
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Silvergate's Importance and Downfall
- Silvergate Bank, crucial for crypto, links crypto firms to traditional finance.
- Its deposits quintupled, and stock soared, but FTX's collapse caused a downturn.
Cohodes's Negative View on Silvergate
- Mark Cohodes views Silvergate CEO Alan Lane as incompetent, citing poor spokesperson choices.
- He believes Silvergate's systems are inadequate and its staff inexperienced.
Ahluwalia's Perspective on Silvergate
- Ram Ahluwalia emphasizes Silvergate doesn't hold crypto, only USD deposits.
- Crypto loans are overcollateralized, and their SEND program has zero credit losses.