It's being called the 2nd largest bank failure in American history. Last night Silicon Valley Bank was stopped by the FDIC. Basically, it lost enough money to scare it's customer base into withdrawing their money and the Federal Government through the FDIC stepped in and halted movement. We are not talking regular bank money, no this is tech start-up and small business money. To paint an even better picture up to $250,000 in deposits is insured by banks incase of loss. Well these accounts saw far more than that in deposits! Would that money be recovered if lost was the question on these customers mind so of course they decided to move funds to not lose them.
The question is what does this mean moving forward? The President is set to address this issue today but Congress has stated they do not plan for this to fall back on tax payers. There is a fund banks pay into that will cover the customers that could have seen a big loss. There's lots of financial talk these days and I've found Wall Street Trapper to be the most relatable. He'll discuss this tonight on his Youtube if you have a chance, check it out. His appearance on the Breakfast Club is below.