Silicon Valley Bank News

Sarah Edwards | May 05, 2023

Silicon Valley Bank is known for servicing many tech companies. It specializes in helping tech startups and private equity firms with loans, banking services, and asset management. Individual consumers can also bank with Silicon Valley, and many tech industry employees and California residents have chosen to do so.

You might be unfamiliar with the bank if you don’t work in tech or don’t live in California. Silicon Valley Bank was the nation’s 16th-largest financial institution before its collapse on March 10, 2023. According to a Federal Reserve Board finding, the failure occurred due to mismanagement of liquidity and interest risks, along with weakened regulatory action by the Federal Reserve itself.

While Silicon Valley Bank is up and running again after being purchased by First Citizens Bank, you might wonder whether its failure could cause issues for customers of other banks. The good news is that you probably don’t need to worry about the security of your money if it’s in an FDIC-insured bank. Let’s review why.

Is a debt collector chasing you for a debt you owe? Consider debt settlement as your way out.

FDIC Insurance protects your checking and savings accounts

FDIC insurance is enough for the average consumer who has a checking or savings account with an FDIC-insured bank. This insurance protects up to $250,000 of an individual’s depository accounts in a single financial institution. Depository accounts include the following:

• Checking accounts
• Savings accounts
• Certificates of deposit (CDs)
• Money market deposit accounts
• Prepaid cards that comply with FDIC requirements

However, FDIC insurance will not protect investment accounts like mutual funds, annuities, stocks, bonds, or life insurance.

Each depository account is subject to the same $250,000 limit. Suppose that you have $250,000 in a checking account, $250,000 in savings, and $250,000 in CDs at the same bank, and the bank suddenly fails. The FDIC will refund you a maximum of $250,000. You could lose the remaining $500,000.

Not sure how debt settlement works? Watch the following video to learn all about how to settle your debts for good:

Bank failures in the U.S. are pretty uncommon

The federal government has many regulations to ensure banks protect your money properly. Government officials know that bank failures can have an adverse economic and psychological impact on consumers and businesses, so it's in their best interests to monitor the banking system for problems.

Despite the federal government’s efforts, an average of 3.6 banks failed annually between 2015 and 2022. However, that’s a far cry from the height of bank failures during the Great Depression, when over 9,000 banks failed nationwide.

The FDIC doesn’t insure investment accounts. If a lot of your money is tied up in stocks and bonds, you’ll want to pay close attention to the stability of your banking institution. People with 401(k) retirement accounts and similar investments should be careful to safeguard their funds in reputable institutions, not fly-by-night companies they’re unfamiliar with.

If your depository accounts exceed $250,000 in a single bank, consider opening accounts at different banks to reduce the risk of losing money.

Let’s consider an example.

If you ever experience a bank failure that impacts your depository account, know that the FDIC will refund you typically within the next few days. It will either open a new account in a different bank and deposit your money or issue you a check.

Even if Silicon Valley Bank didn’t impact you, it’s wise to understand how FDIC insurance works

While all Silicon Valley Bank account holders were made whole after the bank collapse, that isn’t always the case. Silicon Valley Bank found a buyer with First Citizens, so no account holders lost their money. However, if you have depository accounts worth more than $250,000, it may be worth spreading your money across several banks to mitigate your risks.

Is your bank suing you for unpaid debt? Settle the claim with the help of SoloSettle, powered by SoloSuit.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

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>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

• Alabama
• Alaska
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• California
• Colorado
• Connecticut
• Delaware
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• Texas
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Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• Provest Law
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• RSIEH
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
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• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
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• Target National Bank
• Wells Fargo

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