Silicon Valley Bank: Are Annuity Companies Next And What Does This Mean For Annuities?

April 11, 2023 by Charlie Gipple

What happened to Silicon Valley Bank—along with Signature Bank—that represents the two largest bank failures since the financial crisis? Silicon Valley Bank failed because of six primary reasons, among other things:

1. Deposits were drying up relative to in the past and relative to SVB’s expectations. Because SVB’s customers were largely startup companies and because the economy had been rough on those startup companies, that meant these customers needed their cash back from the bank (SVB). Furthermore, with deposit interest rates being less than other places that startups can put their money, deposits left SVB.

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Originally Posted at Broker World Mag on April 1, 2023 by Charlie Gipple.