You probably saw recent news coverage that Silicon Valley Bank (SVB) was closed by the FDIC & California regulators. As the government moves to protect depositors, these swift and immediate actions give us confidence in the system.
While everyone’s instinct in these situations is anxiety and stress, we are focused on you, your families, and the big picture. Here is what we know thus far:
- SVB had a challenging and unique business model that was unlike other banking institutions because it focused heavily on working with startup and venture capital firms.
- After closing the bank, the FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara and transferred all insured deposits there.
- The system is not broken. FDIC has announced that all insured depositors will have full access to their insured deposits no later than Monday morning 3/13/23.
- Historically, there are a lot of unknowns in these situations.
Moments like this highlight the importance of both diversification and a time-tested investment strategy built to support your long-term financial plan.
We will continue to carefully analyze the data and monitor the situation closely.
We know this can feel overwhelming, so it is important to take a deep breath and understand that you aren’t in this alone. If you are feeling concerned or have any questions at all, feel free to respond to this email so that we can set up some time to speak.
