Silvergate, Silicon Valley and Signature Bank failures – how do they affect me?

Photo of Silicon Valley Bank

There are several answers to this question, so let’s go through them one a time. First if you were a stock investor in Silicon Valley bank (SVB) or Signature Bank (SBNY), it is straightforward, those stocks are no longer trading and those shares have no value, so your investment has no value. As for Silvergate (SI), they were not seized by the state banking regulators, so that stock is trading and equity holders still may eek some value from the investment. The closing price as of today was $1.18, a new 52 week low for the stock. The 52-week high was $162.65, so the stock is down 97%.

Once you get past the exposure to owning stocks in the banking sector, you should review our banking relationships as well. One glaring problem for Silicon and Signature Bank’s clients is that a vast majority of them were not FDIC insured, so without government intervention their bank deposits would be lost.  The US Treasury, along with the Federal Reserve Board and the President Biden, announced that the FDIC would in fact back all assets of the banks, even those that are not FDIC insured. While the provides some much-needed relief, this is not a guaranteed outcome if other banks find themselves in trouble.

It is truly important you understand if your bank investments are FDIC insured, or not. The simple rule is FDIC insurance applies up to $250,000. So, if you have more than $250,000 in one bank, you should make sure all of your funds are covered. If they are not covered, you should consider moving them.   This is actually $250,000 per registration and that term can get a little tricky, but here is an example:


John Smith individual account = $250,000 = FDIC insured

John and Jane Smith joint account = $250,000 = FDIC insured

Jane Smith individual account = $250,000 = FDIC insured


John and Jane Smith joint account = $500,000

$250,000 FDIC insured, and $250,000 NOT FDIC INSURED

This means that if the bank the John and Jane Smith have their joint account in goes out of business, under current rules, they will only get back $250,000 not $500,000.

IRAs and TOD accounts are their own separate registration, so again if you aren’t sure about your insurance levels, you should be asking. Someone on our team will be happy to discuss this with you and you can always contact your bank directly.


No strategy assures success or protects against loss. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.