Risks in the Banking System
March 17, 2023
The sudden collapse of Silicon Valley Bank (SVB) has roiled the markets, panicked investors, and left many observers wondering whether we are on the precipice of another financial crisis. The Federal Government has taken the unprecedented step of ensuring all depositors of SVB will be able to receive the full value of their accounts, beyond the standard $250,000 FDIC insurance, in hopes of stopping panic and preventing further bank runs. While it remains to be seen how far-reaching the fallout from SVB’s collapse will be, we thought it would be helpful to examine what caused the problem and how Hanover’s custodial partner is
working to limit risk and safeguard client assets.