The collapse of Silicon Valley Bank and Signature Bank has caused concern among locals in Southern California.
The failure of the two banks has sent shockwaves through the US economy, causing many to worry about the safety of their money.
However, customers of local banks have been reassured that they can still withdraw money from their accounts and that it’s business as usual.
Regulators are now trying to auction off Silicon Valley Bank after they were unable to find a buyer.
This is the second-largest bank failure in US history, behind the 2008 collapse of Washington Mutual.
Customers of other small to medium-sized banks are also spooked, especially those with deposits exceeding the FBI’s $250,000 insurance limit.
Some have considered moving their savings to larger institutions.
President Biden has insisted that the nation’s banking system is safe and promised that small businesses with accounts at the failed banks will be able to pay their employees.
The money for this will come from fees that banks pay into the deposit insurance fund, not from taxpayers.
Despite this reassurance, many bank stocks have plummeted.
Experts advise spreading out assets by opening accounts at different banks to minimize risk.
However, it’s believed that the failure of these two specialized banks will not cause widespread problems in the banking industry.
