March 13, 2023
Update from Antolino & Associates:
The US banking sector was rocked by the news of the collapse of two prominent banks, Silicon Valley Bank and Signature Bank. Silicon Valley Bank, which specialized in providing loans and banking services to technology startups and venture capital firms, was acquired by the Federal Deposit Insurance Corporation (FDIC), and depositors with accounts exceeding the FDIC-insured limit of $250,000 per account may face delays in accessing their funds.
Meanwhile, Signature Bank, a New York-based lender with a focus on commercial and private banking services, also collapsed. The bank was also acquired by the FDIC, and customers with deposits exceeding the insured limit may face similar delays in accessing their funds.
The collapse of these two banks has sent shockwaves through the banking industry and raised concerns about the stability of the sector. While the FDIC's insurance program provides a safety net for depositors, the failures of Silicon Valley Bank and Signature Bank serve as a reminder of the importance of diversification and risk management in the financial world.
We wanted to provide resources directly from our investment partners. Our two main Custodial relationships, where most of our client brokerage accounts are housed, are with Charles Schwab and Kestra Financial (Kestra utilizes NFS/Fidelity). Please see below.
Charles Schwab – press release: https://www.aboutschwab.com/perspective-on-recent-industry-events
Kestra Financial (NFS/Fidelity) – resources:
- Brokerage accounts and the strength of Fidelity -https://storage.pardot.com/36202/1678732126EaT3a3Zf/A_Guide_to_Your_Brokerage_Account.pdf
- Safeguarding your Fidelity Account and Assets: