As you may be aware, there was a highly publicized failure of Silicon Valley Bank last week. As anticipated, the U.S. Federal Reserve (Fed) and FDIC announced a plan late yesterday to fully protect all of Silicon Valley Bank’s depositors, whether insured or uninsured due to the $250,000 limit, with total access as of today. Also, the Fed announced additional available funding to banks to make sure that they can meet withdrawal requests, via the creation of the Bank Term Funding Program (BTFP). The Fed has commented that the BTFP is large enough to cover all uninsured deposits in the U.S.
Bank regulators have termed this failure as an “idiosyncratic event” related to Silicon Valley Bank’s unique circumstances. The U.S. Treasury Department and FDIC have reinforced their view that “the U.S. banking system remains resilient and on a solid foundation, in large part due to the reforms that were made after the Financial Crisis that insured better safeguards for the banking industry."
While volatility is natural in moments like this, we, at Country Club Trust Company, are closely watching and inspecting these current developments and continue ready to guide our clients' portfolios toward their long-term goals and outcomes.
Please be assured that we continue to work diligently on your behalf, providing the level of service you have come to expect and deserve. As always, we are ready and more than willing to assist in any way we can. Should you have any questions, we are here for you.
- Country Club Trust Company
Information provided is for illustrative and discussion purposes only; should not be considered a recommendation; and is subject to change. Some information provided above may be obtained from outside sources believed to be reliable, but no representation is made as to its accuracy or completeness. Please note that investments involve risk, and that past performance does not guarantee future results.