- Gemini CEO points out the double standards of United States financial regulators.
- First Republic has seen a $100 billion nose dive in earnings for Q1.
- First Republic is working towards private receivership.
Gemini’s CEO Cameron Winklevoss accuses the United States regulators of unfair treatment towards crypto-friendly banks, noting that the treatment would have been different if the First Republic was a crypto bank.
The CEO and co-founder of the crypto exchange with headquarters in New York, Gemini, has accused US regulators of double standards in their dealings with the crisis of First Republic bank.
According to Cameron, the actions towards the First Republic would have resulted in its collapse weeks ago if it had been a crypto bank. The First Republic started experiencing structural challenges with their balance sheets simultaneously; Silicon Valley Bank and Signature Bank were forced to close by federal regulators during a crackdown on financial institutions.
Winklevoss is not the only one with a claim like this as there has been a series of letters penned by three republicans members of the United States House of Representatives Financial Services Committee in an attempt to get more information on the possible coordinated effects that have been taken against crypto companies and crypto-friendly companies that operate on US soil.
In a report from CNBC on April 26th, the advisers for the First Republic are planning to seek a route to persuade large US banking institutions that have already helped the almost collapsed firm more than $30 billion to help them provide more aid due to the government refused to take the First Republic into receivership.
Silvergate Bank and Silicon Bank were taken into receivership by the government on March 8th and March 10th, respectively.
First Republic advisers had reportedly said that the current private market solution for the liquidity problems of the firm would help the bank remain in operation; there is also talk of government receivership getting referred to as the closed-bank scenario.
A senior correspondent at Fox News told his followers on Twitter that the option of a private bailout has been pushed by the United States Treasury Secretary Janet Yellen, who is working towards bailing them out without using government funds as they did with Silvergate Bank and Silicon Valley bank.
First Republic’s disaster became apparent when the firm reported its Q1 earnings, and First Republic wrote that it had a plummet of more than $100 million.
The First Republic has announced that it would pursue strategic options to strengthen its financial standing as quickly as possible. Since publishing the report, First Republic’s shares have plummeted more than 64%, falling from a high of $16.14 to just $5.68 at the time of this writing.
First Republic’s downfall could be a push for more investors to name their way into the crypto market as they grow more distrustful of centralized financial institutions with the current banking crisis.