The Fed also said it will offer bank loans for up to a year in exchange for US Treasury bonds and mortgage-backed securities that lost value. Rising interest rates meant cheap Treasury bonds SVB and other banks invested in years ago crumbled in value – last week’s bank run was triggered by SVB selling those securities at a steep loss to help pay customers’ deposit withdrawals after people started pulling their money out of the bank. The government’s actions this weekend also try to prevent the next SVB from happening, further stabilizing the sector after a chaotic week. The banking sector should be, theoretically, more stable due to the regulatory reforms put in place after the crisis in 2008. “The first bank failure since 2020 is a wake-up call for people to always make sure their money is at an FDIC-insured bank and within FDIC limits and following the FDIC’s rules,” said Matthew Goldberg, a Bankrate analyst. But the collapse is a good reminder to be aware of where your money is held, and not to have it all in one place. Everyday consumers, on the whole, are unlikely to be affected. Your money is most likely not going anywhere.

“I don’t think people should panic, but it’s just prudent to have insured deposits versus uninsured deposits,” Hatfield said.

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