Federal Reserve Orders Silvergate Bank to Act on Wind-Down Plan

The US Federal Reserve has ordered Silvergate Capital Corp. and its banking unit to act on a plan to wind down the lender’s operations, with a 10-day deadline to provide detailed information.

The Fed’s move is in conjunction with California’s Department of Financial Protection and Innovation. Both regulators said they had “identified numerous deficiencies, including with respect to both safety and soundness and compliance with banking laws and regulations,” at the firm, according to the order.

The La Jolla, California-based bank and holding company will need to implement their previously announced plan “in a manner that protects the bank’s ...