SVB collapse sparks concerns over banking stability and equity compensation.
The FDIC estimates that the cost to the Deposit Insurance Fund to cover the collapse of Silicon Valley Bank is $20 billion, including $18 billion to cover uninsured deposits. The failure of Signature Bank is likely to require about $2.5 billion, including $1.6 billion to cover its uninsured deposits. The FDIC chairman and other officials will testify before the Senate Banking Committee about the failures of the two banks and will attempt to reassure lawmakers that the banking system remains sound, and mismanagement is to blame for the second greatest bank failure in U.S. history. The losses to the Deposit Insurance Fund will have to be recovered through special assessments on banks.
- Covering collapse of SVB could cost $20 billion, FDIC chairman to tell Congress CBS News
- SVB staff claim they got up to 50% of their salaries in company equity—now some may have have lost millions in its collapse Yahoo Finance
- Seattle-area banking leaders worry about bank runs in the digital age - Puget Sound Business Journal The Business Journals
- Opinion | What Congress Should Ask Regulators in SVB's Aftermath The Wall Street Journal
- How to protect small businesses caught in the wake of the Silicon Valley Bank collapse The Hill
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