In this episode of the Word Podcast, hosts Brendan Ward of Cherry Tree Title and Seth Williams of Reference Real Estate were joined by guest Martin Connolly to discuss the recent collapse of Silicon Valley Bank (SVB).
SVB, which was the 16th-largest bank in the US and catered to the venture capital community, was closed down by California regulators due to a run on the bank. The FDIC then seized control of SVB and insured depositors will regain access to their accounts no later than Monday morning, with uninsured depositors receiving an advance dividend within the next week.
The closure of SVB has sparked fears of contagion, and other bank stocks were volatile on Friday. Earlier in the week, SVB had disclosed mounting losses, and shares plummeted more than 60% before being halted.
The hosts and guest discussed the potential impact of the collapse on the startup community, as SVB had been considered a go-to for startups for decades. They also examined the broader implications of the collapse, including the potential for increased regulation and scrutiny of banks catering to the venture capital industry.
Overall, the collapse of SVB has raised concerns about the stability of banks catering to the venture capital industry, and the hosts and guest provided valuable insights and perspectives on this important issue.
