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Ok, so, the Silicon Valley Bank (SVB) collapsed last week. In this instance, "collapse" means the bank's level of cash on hand dropped below the amount of money its clients deposited, forcing regulators to close them.
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SVB announced $1.8B in losses on investments, which lled to venture capital firms suggesting companies pull out of the bank. This snowballed into a series of withdrawals adding to regulators need to step in to protect depositors.
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The Federal Deposit Insurance Corporation stepped in, shut down SVB, and, for now, runs the bank as the Deposit Insurance National Bank of Santa Clara.
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Sunday regulators announced all SVB depositors would have full access to their money, and that they were extending protection to depositors of Signature Bank of New York, which was closed over the weekend.
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President Biden gave a speech on Monday ensuring Americans that they can have confidence in the banking system.
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Ripples from the shutdown have affected bank stock values nationwide and had other impacts on the US financial system, such as a drop in mortgage rates to 6.57% from a recent high of 7.05%.