JACKSONVILLE, Fla. – Amid the failures of Silicon Valley Bank and Signature Bank in New York last week, the United States treasury secretary reaffirmed to Americans Thursday that their money is safe.
“I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them,” U.S. Secretary of the Treasury Janet Yellen told the Senate Finance Committee Thursday.
In recent days, Switzerland’s federal authorities stepped in after investors at Zurich-based Credit Suisse, a second-largest lender in Switzerland, panicked over a comment made by a major shareholder. That comment was later found to be misinterpreted.
Brian James, who is the managing partner of Ullmann Wealth Partners, said the chaos at Credit Suisse is not necessarily a signal about the health of the banking system at large.
“It says more about how quickly news spreads,” he said. “Going back to Silicon Valley...I read last week, this is the first bank run caused by Twitter. So, the Swiss government stepped in quickly in the terms of Credit Suisse. So, I think that will be okay, but it is unnerving.”
He said local consumers should not be concerned about the health of their bank or credit union as long as it’s insured by the Federal Insurance Deposit Corporation (FDIC), which is an independent agency created by Congress that insures deposits up to $250,000.
“I don’t think it’s incumbent upon an individual deposit method to do research on an individual bank, as long as you see that FDIC insurance and know that it’s up to $250,000,” James said.
Jacksonville resident Jean Depoli told News4JAX that news about the banks isn’t worrying her because the changes have only affected specific banks.
“It’s not across the board,” Depoli said.
David Bailey feels the same way.
“I don’t have money in Silicon Valley. So It’s not something for me to worry about,” Bailey said.
James also suggested consumers should consider the source when they hear something about the financial system that might make them nervous. He also said he thinks any problems are concentrated on just a few banks that made poor decisions.