Yes, it had billions in deposits, but the reality is that by deposit size, SVB barely makes the top 50 list.
The top 10 banks have about $10 Trillion in combined deposits vs SVB’s menial $100 billion. SVB is less than 0.3% of the market share.
There may be more bank closings, but we are far from fed bailouts and lower interest rates.
FDIC will cover depositors up to the FDIC limit and shares of investments will be reallocated to the rightful owners.
It was more about poor management than a systemic bank run issue from my research (all sorts of sources)
The real question, how much will taxpayers have to pay to fix this company’s poor management?
Regulators will be reopening SVB Monday and supposedly depositors will soon regain access to their funds.
We will most likely see the company chopped up and sold off into chunks. Some companies buying instruments like life insurance policies below market value for large potential future gains.