The FDIC generally shuts down failing institutions on Friday after the close of business to minimize disruptions to depositors.1
LEGAL TOKENS
Here is hoping that Silvergate will be the final player to be affected by the contagion that started with 3AC last year. Regardless of whether it is the last domino or not, if Silvergate does fail, the banking regulators’ resolve against crypto will harden, particularly in light of Silvergate’s ability to obtain loans from the Federal Home Loan Bank because of its bank charter in its last ditch effort to stay afloat (though it appears that those loans have since been repaid).
1 It also typically aims to make deposits in transaction accounts (e.g., checking accounts) available to depositors on the following Monday, though there are no guarantees that this would happen.
