Evaluation agency Moody’s announced that it sees significant governance gaps for Silvergate.
Moody’s downgrades Silvergate for the second time in less than two weeks. Moody’s is based on the company’s lack of capital and governance deficiencies.
Moody’s: Silvergate Has Significant Governance Shortcomings
Moody’s downgrades Silvergate for the second time in less than two weeks, citing management shortcomings, after Silvergate told the U.S. Securities and Exchange Commission that the company may be underfunded and delayed filing.
Moody’s stated in its statement:
“The measures increase the organization’s exposure to adverse developments, highlighting significant governance shortcomings in terms of the bank’s risk management and ability to properly assess and respond to abruptly changing operating conditions for its particular business model. The bank’s adverse governance risk has a noticeable negative impact on Silvergate’s credit ratings.”
Moody’s Silvergate also announced that it has sold additional investment securities to fully repay outstanding Federal Home Loan Bank advances and incurred additional investment losses previously recorded excluding non-temporary impairment of securities.
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