When the U.S. savings and loan crisis hit in the 1980s, I was reporting for my hometown newspaper, the Evening Sun, in Baltimore.
On Friday, a run on deposits led to the closure of Silicon Valley Bank, making it the second-largest bank failure in U.S. history. The bank was shut down by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
The FDIC, in turn, created the Deposit Insurance National Bank of Santa Clara and announced that all insured depositors will have access to their insured funds no later than Monday.
“Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds,” the FDIC said in a statement.
The situation provides an opportunity to remind depositors how much of their money is protected by the federal government.
Wondering how safe your bank deposits are? Here’s a primer on FDIC insurance.