How Recent Bank Failures Affect Your Money


Silicon Valley Bank’s announcement last week that it urgently needed to raise $2.25 billion sent shockwaves through the financial system.

Within days, regulators were forced to seize the bank in the second-largest bank collapse. Regulators closed Signature Bank just two days later — making it the third-largest bank collapse in America.

Bank Failures Are More Common Than You Think


Although the prevailing narrative was that Silvergate Capital was winding down its bank operations due to crypto investments and SVB was the bank of choice for startups and VCs, bank failures are more common than you think.

As deposits came in, SVB took the opportunity to invest heavily in debt like U.S. Treasuries and mortgage-backed securities.

Are More Banks in Trouble?


On Sept 2022, the Federal Reserve Bank of Kansas City highlighted the unrealized loss positions in community banks due to the rising interest rate environment. The declining tangible equity capital ratios could spell trouble for the smaller banks.

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