🚨 BREAKING: FED STEPPING IN, SVB Emergency Pod, and Resources
The Run, Relief, and Resources...
BREAKING NEWS: SVB, Signature Bank Depositors to Get All Their Money as Fed Moves to Stem Crisis
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.
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
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…
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…’
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,
Zach Anderson Pettet