BREAKING NEWS: SVB, Signature Bank Depositors to Get All Their Money as Fed Moves to Stem Crisis

TLDR;

• We just heard that the Fed has rolled out Emergency Measures to prevent any further contagion through the system.

• The Fed is guaranteeing all deposits for SVB customers and additionally providing the same coverage for another bank that they had to take over today - Signature Bank.

• The government declared these two banks as a systematic risk for the entire banking system. Hence, they have the power to step in and cover all deposits under a special provision.

• If you've been watching this closely, take a deep breath. There are still questions to be answered, but this is BIG. This is exactly what we needed to hear, especially considering the importance of perception of strength going into tomorrow morning.

Friday’s Emergency Pod With the Squad

Rachel Morrissey, Micky Tesfaye, and Sanjib Kalita join me for this conversation. We cover the what, why, and how of where we were on Friday. A lot has happened since then, but this may be a helpful primer if you’ve been busy.

Friday felt like a monumental moment in financial history and we wanted to document it. At that point it was more of a therapy session than anything else, but wow, what a day that was.

Poll

Emergency Capital & Other Resources

Caveat: I compiled this list before the news came out. It’s possible many of you won’t need this anymore, but I’m leaving it in as I think there will likely be situations where this is still helpful…assuming many of you will be looking to switch banks, etc.

• CapChase: Emergency Payroll Financing for SVB Affected Startups

• Brex: SVB Emergency Line

• Arc: Short-term working capital

• How To Claim FDIC Insurance For Lost Funds by Vol.1 Ventures

• See tweets below as they lead to other helpful resources. These are the people I’d be reaching out to if I was still at a startup right now…

Modern Treasury @ModernTreasury

We’re working with customers and impacted companies to help them navigate the situation with SVB. Reach out if we can help. More perspective in this note from our co-founder and CEO @dadiomov:

moderntreasury.comA Message from Our CEOA message from Modern Treasury CEO Dimitri Dadiomov regarding recent events involving Silicon Valley Bank.

8:35 PM ∙ Mar 10, 2023

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23Likes12Retweets

Ohad @ohadsamet

Incredible sympathy for founders and execs who aren't going to sleep until this issue is resolved one way or the other. My DMs, email, etc are open if you need to talk.

5:37 PM ∙ Mar 10, 2023

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36Likes3Retweets

Joshua Browder @jbrowder1

If any founders or friend I know affected are by SVB: Happy to intro you to the team at J.P. Morgan (where DoNotPay and Browder Capital banks; we have no SVB exposure) or Series Financial. Also, if you need anything else, DMs open. https://t.co/LcCWHMNzaG

12:31 AM ∙ Mar 11, 2023

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127Likes16Retweets

Sumukh Sridhara @sumukhsridhara

We just built a product @AngelList to help startups impacted by SVB that need emergency capital: - Standardized Loan Agreement Docs (temporary loan from investors) with online signing & funding. - Built in banking access (if your company needs it) DM me if you need access

3:23 AM ∙ Mar 11, 2023

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1,392Likes378Retweets

Is the rest of the world paying attention?

There have been huge headlines across business press, but my non-scientific poll of friends and family tells me that the masses are paying zero attention at this point…and the one’s that are seem to googling, ‘FDIC…’

What’s Next

We’ll be doing an Emergency Pod tomorrow morning with a whole new squad to cover what’s transpired over the weekend, destroy some terrible takes, and generally have a moment of catharsis.

Keep calm and carry on,

ZAP

Zach Anderson Pettet