‘BRB, storing my money in gold’: Founders scramble to figure out which banks are safe
Founders are still shaking off the dust a week after Silicon Valley Bank’s collapse. Rumors are swirling about who might be looking to buy the beleaguered bank’s assets.
Some of the top firms urged their portfolio managers to diversify their assets as the bank was collapsing, and are continuing to do so, even though regulators have stepped in to guarantee that all depositors would get access to their stored cash.
While diversifying assets feels obvious in retrospect, actually following that bit of advice is harder than it seems.
Nothing is guaranteed, except when it is, for now, right?
Stability is not yet a standard. First Republic Bank and other regional competitors have seen stock volatility since March 9, when SVB crashed. On Monday, shares of First Republic fell so sharply that the company’s trading had to be paused due to volatility.