- This weekend is key to determining if the situation escalates from an inconvenience to a crisis for SVB clients, most of which are businesses that need to meet payroll.
- FDIC insurance covers up to $250,000 of deposits, all of which will be made available by Monday morning. But most of SVB’s customers are companies with much higher balances, and it’s not yet clear how much money they’ll be able to draw and when.
- The worst-case scenario is that the market opens Monday and SVB remains a ward of the state, with no white knight on the horizon.
Trending
This Weekend Could Determine When Bank’s Collapse Becomes A Contagion
This Weekend Could Determine Whether Bank's Collapse Becomes A Contagion
A Brinks truck is parked outside of Silicon Valley Bank in Santa Clara, Calif., Friday, March 10, 2023. The Federal Deposit Insurance Corporation is seizing the assets of Silicon Valley Bank, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank Friday. (AP Photo/Jeff Chiu)
