An Old Ponzi Scheme Delivers Fresh Cash for Creditors
Silvergate Capital in crisis; Blackstone hits snag on Finnish CMBS
R. Allen Stanford arrives for a hearing in Houston, Texas, U.S., on Tuesday, Nov. 17, 2009. He was sentenced to 110 years in prison in 2012.
Photographer: F. Carter Smith/Bloomberg NewsWelcome to The Brink! I’m Jeremy Hill, a reporter in New York, where investors in a Ponzi scheme that collapsed 14 years ago received an unexpected boost. But before that, let’s look at the Silvergate crisis and Blackstone’s troubles in Finland. We also have the latest on Bed Bath & Beyond. Follow this link to subscribe. Send us feedback and tips at jhill273@bloomberg.net or Tweet/DM to @JeremyHtweets.
Silvergate Capital, the bank that bet big on the crypto industry, has sparked new worries after raising questions about its ability to stay in business. Its stock plunged 58% on Thursday after the company said its losses may leave it with too little capital and crypto firms including Coinbase Global, Galaxy Digital Holdings and Paxos Trust rushed to cut ties with the bank. “Silvergate is working diligently to file its 10-K as soon as possible and has no further comment at this time,” a spokesperson said Thursday, referring to the overdue report.