What we can VERIFY about your money after the SVB and Signature Bank collapses
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Today we're fact-checking claims about your money after the Silicon Valley Bank and Signature Bank collapses.
QUESTION OF THE DAY
Is my money safe at the bank following the SVB and Signature Bank collapses?
From Robert via text message
Silicon Valley Bank and Signature Bank, both of which cater to the tech industry, recently collapsed after bank runs. After the bank failures, VERIFY reader Robert and others online have asked whether their money is safe at other banks.
We can VERIFY that, yes, your money is safe at the bank, if you have no more than $250,000 in a single bank account.
People with money at other banks “have little reason to be concerned over the collapse of Silicon Valley Bank and Signature Bank,” David Ely, a professor of finance at San Diego State University, told VERIFY.
If you have up to $250,000 per account, that money is insured by the FDIC. Anything over that is not insured in the unlikely event of a bank collapse, but there are ways to make sure your money is still protected. Read the full story.
The Federal Deposit Insurance Corporation (FDIC)
National Credit Union Administration (NCUA)
Ally Bank
David Ely, Ph.D.
Professor of finance at San Diego State University
Jay Hatfield
CEO at Infrastructure Capital Advisors and portfolio manager of the InfraCap Equity Income ETF
FAST FACTS
BIG PICTURE
Taxpayer money isn’t being used to cover deposits at Silicon Valley Bank
Just days after regulators shut down Silicon Valley Bank, the federal government announced all of the bank’s customers would get their money back. This prompted questions on social media about whether taxpayers would foot the bill.
We can VERIFY that taxpayer money is not being used to cover the deposits at Silicon Valley Bank.
The Federal Reserve announced it will protect all money for account holders, regardless of their balance, using funds from the Deposit Insurance Fund. This is a program that is funded by fees paid by banks and interest earned on government bonds, not funds from taxpayers.
President Joe Biden and two members of Congress, including U.S. Rep. Andy Barr (R-Ky.), also reiterated that taxpayer money will not be used to cover Silicon Valley Bank's deposits. Barr said in part that taxpayers "are not bailing out SVB depositors or these uninsured depositors."
The FDIC says it will require banks to pay a special assessment to help recover any losses.
DID YOU KNOW...
... that the first official U.S. coin said "Mind Your Business" on the front?
The motto was popularized by Benjamin Franklin.
IMAGE CREDIT: FEDERAL RESERVE BANK OF ATLANTA
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