Silicon Valley Bank - Biggest Bank Failure Since Global Financial Crisis

[Reed Rickenbach]

Looks like financial regulators have closed Silicon Valley Bank. This bank has high exposure to tech & venture capital, however I was surprised to see this headline so soon. I have seen several articles stating that this could cause the FED to pivot - I'm not wholly convinced. Questions:

Does this change your confidence in holding cash at one institution over the FDIC limit?

Will this cause the FED to pivot? 

Article below:

Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis (cnbc.com)

[Chris Seveney]

@Reed Rickenbach

Will it cause fed to pivot - I doubt it. Let’s do the autopsy and see what is really behind the curtain on what they were doing. From info I have they were very heavy into tech vc space which has been getting crushed with lack of VC money flowing into companies and the bond market. Honestly this is something execs their should have seen coming.

Regarding money, we run an 8 figure business and use a few banks but it’s nearly impossible to run a business of that size with only $250k per account. If I am pulling in a $5M real estate deal I should have 20+ banks (since fdic is per depositor not Account). We use chase for our primary bank and if they go under then we are all effed. I am very confident chase would get a bail out or another bank to step in.