11/5/2023 0 Comments Huntington online bankingIn the case of Silicon Valley Bank, accounts of more than $250,000 were initially vulnerable when it had to shut down, making some companies worried they wouldn't be able to make payroll. Customers can double check with their bank to confirm this. Accounts are covered up to $250,000, including checking accounts, savings accounts, money market accounts and certificates of deposit. What does FDIC-insured mean? What does it cover?įDIC insurance covers traditional deposit accounts, and depositors do not need to apply for it. New Brighton-based Cardiovascular Systems does have an operating account with SVB, but a company spokesman said their overall exposure to SVB is minimal. Meanwhile, several publicly held, Minnesota-based technology and med-tech companies issued statements assuring investors they had no connection with Silicon Valley Bank, including Baudette-based ANI Pharmaceuticals, Plymouth-based DiaMedica Therapeutics and Eden Prairie-based NeuroOne Medical Technologies. Paul-based Sunrise Banks, said his bank has already fielded some inquiries from fintech businesses that had money in Silicon Valley Bank and are looking for places to move it. Some Twin Cities-based startups, such as Soona, that had deposits with Silicon Valley Bank sighed with relief Monday when they were able to access their funds.ĭavid Reiling, CEO of St. What does this mean for local companies, many of them startups, with money in the collapsed banks? There are a lot of regional banks that are well diversified." "They had loan concentrations that were different. Meanwhile, Huntington Bancshares' shares plummeted 17%, and Wells Fargo was down 7%.Īnalysts are watching small regional banks with large uninsured deposits in particular as they are thought to be more vulnerable, particularly in today's higher interest rate environment.īut George Singer - a Twin Cities partner at Holland & Hart, which specializes in corporate finance, bankruptcy and mergers and acquisitions - noted Silicon Valley Bank and Signature Bank both had different portfolios than most other banks. Louis Park-based Bridgewater Bancshares' declined 7%. Bank stocks, including those of Minnesota-based companies, sank Monday morning after markets opened. "Your money is safe and available, whether you're at a bank or at a credit union, whether it's within federal deposit insurance limits or whether you exceed federal deposit insurance limits."ĭespite the federal government's moves to quell fears, investors were still jittery about a possible ripple effect in the wider banking system. "The significance of the steps taken by the Fed, FDIC and Treasury last night are that you don't have to worry about the safety of your bank accounts," said Greg McBride, chief financial analyst at. That means that all customers had full access to their money starting Monday. on Sunday rushed in to help avoid a wider fallout, announcing they would guarantee all of its deposits, as well as those at Signature Bank, which also was forced to close this past weekend. regulators have stepped in to shore it up.īiden's comments came after the Federal Reserve, Treasury Department and Federal Deposit Insurance Corp. President Joe Biden on Monday also sought to reassure Americans the financial system is safe as U.S. "If you look back at the last financial crisis when there were over 500 bank failures, in the overwhelming majority of the cases, the uninsured depositors did not incur a loss," he said. Scott Coleman, a Minneapolis-based partner in Ballard Spahr's banking and financial services team, said people should not panic. Silicon Valley Bank - which worked mostly with venture capitalists, startups and other technology firms - failed at the end of last week as customers began pulling out their money. history - reverberated across the country, including in Minnesota.Ĭompanies and venture funds with ties to the bank hustled to make sure their money was safe, while consumers tried to figure out what, if anything, it could mean for them. Silicon Valley Bank's collapse - the second largest bank failure in U.S.
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