On Sunday evening, as the fallout of Silicon Valley Bank’s (SVB) historic collapse continued to impact the startup economy and other major banks, the US government announced significant steps to promote public confidence in the banking system and protect the economy.
Although the Federal Deposit Insurance Corporation’s (FDIC) closure of both SVB and Signature Bank fully protects all depositors, shareholders and unsecured debtholders will not be similarly safeguarded. Any losses to the Deposit Insurance Fund will be recovered through a special and ongoing assessment of banks.
But these regulatory actions do not answer every question that those with personal or professional connections to the country’s second-largest bank failure might have. If you are among those impacted by the recent decline in SVB’s share value — whether as an employee, depositor, affected founder or adjacent party — you may now feel fairly uncertain and overwhelmed.
READ FULL ARTICLE HERE
