FDIC’s SVB Sparks Bank Run, BoA and Wells Fargo Acquisitions

The Silicon Valley bank collapsed this week, forcing the Fed to step in and take action – which is now having ramifications across the country… and causing a lot of fear across the country.

ICYMI…the FDIC took over the operation of SVB on Friday because of the massive withdrawals that occurred among many of its customers – followed by almost everyone investing (between mortgage-backed securities and mortgage-backed securities) Was trying to shore up more capital. what not) that they were made of late, who are starting to retreat / are due.

As a result, people started pulling their cash out of the bank all at once… which translates into a good old fashioned bank run – similar to what we saw during the Great Depression.

Some photos/videos have started circulating the internet, and the lines forming outside SVB branches – especially in the Bay Area, where they are mostly headquartered – are quite shocking. People are clearly coming in to try and get their money back, but at this point it may be too late… Once the FDIC gets involved, a queue forms – and according to federal law Under that they can give only a few guarantees. Of course, the key figure is $250k.

The FDIC insures up to $250,000 for any depositor at federally protected banks – nothing more than that is promised to be returned … and reports indicate most of SVB’s customers – usually the tech startup world that often have boatloads of accumulated possessions — maybe much more than that… may be lost when the dust settles.

On top of this, there are now reports of Wells Fargo accounts being frozen for those trying to withdraw and transfer funds. Bank of America is joining in — both are trending, with a lot of Twitter users suggesting that everyone get their cash out asap.

WF cited a “technical issue” their customers may be experiencing, but is saying not to panic. The BoA have been quiet so far, but it also doesn’t seem like anything concrete has happened in their court yet – just speculation/forecasts of possible things to come.