Silvergate Bank’s Major Announcement
In a stunning turn of events, Silvergate Capital, the parent company behind the fallen Silvergate Bank, has laid out a bleak future for its employees and investors. In a filing made to the U.S. Securities and Exchange Commission, a staggering 230 staff members are set to lose their jobs starting May 12. It’s official: the word ‘separation’ has never sounded so tragic.
Goodbye, NYSE
As if the news couldn’t get worse, the New York Stock Exchange has also suspended trading on Silvergate’s stock, with delisting expected to commence shortly. If anyone has ever felt like a stock ticker in freefall, it’s Silvergate, which has seen its share price plummet nearly 93% since the start of the year. Talk about an unwanted rollercoaster ride!
A Shrinking Workforce
After the initial wave of layoffs, roughly 80 employees will remain to push through the arduous liquidation process of the bank. But hang tight! More cuts are on the way, with additional headcount reductions targeted for June 30, August 30, and November 30—or whenever they think the staff count can take another hit. The estimated costs for this drawdown? About $13.6 million. Hope they have some budget-friendly popcorn ready for the show!
The Silence of Financial Reporting
In a separate filing on the same day, Silvergate revealed it’s waving goodbye to legally required financial updates, specifically for the 2022 fiscal year and the first quarter of 2023. Their excuse? Let’s just say the regulatory inquiries have turned into an unholy mess, and they’re swimming in legal liabilities associated with ongoing investigations. Making sense of that financial circus might require a magician!
In the Best Interest of Stakeholders?
Silvergate determined it’s in the “best interests” of their stakeholders to cut costs and preserve whatever shreds of value remain. Ironically, some of the cuts target employees who were “critical” in preparing those roadmap financial filings that no longer exist. It’s like throwing out the map just when you’re lost in the wilderness!
