Making sense of Silicon Valley Bank's failure: What it means for your money
It's never a good sign when "bank collapse" is trending on Twitter.
Such was the case Monday as investors pummeled shares of First Republic Bank and Western Alliance Bancorporation, among several other regional financial institutions. Evidently, they feared that these banks would suffer the same fate as Silicon Valley Bank in Santa Clara, Calif., which was taken over Friday by the Federal Deposit Insurance Corp., and Signature Bank in New York City, which was shut down Sunday by state regulators.
The rapid rise in interest rates has been a challenge for banks in general, reducing the value of some of their safest investments. But banking experts say the circumstances that toppled Silicon Valley Bank and Signature Bank were so unique, and the response from the federal government Monday so aggressive, that depositors in other banks can stay put rather than shifting into crisis mode.
Besides, at least part of the doomsayer wing on Twitter appeared to have
