Here’s all the banks that are getting crushed right now – and what to do when your money is in

If history has taught us anything about bank runs, it is that when a financial institution fails, panic breeds panic. As fear spread from in and across the Bay Area after the collapse last week Silicon Valley Bankrumors began to swirl that the famous tech financial institution was dragging others with it.

Then Monday started with several banks trading stopped into their stocks because the stocks were falling so fast. If you have money in a bank whose share price has fallen and stopped trading, it is important to know that this is the case Announcing the Federal Reserve’s Bank Term Funding Program has done a great deal to prevent a domino effect of a bank failure. Experts agree that while the stock market is in for a volatile ride, it is not an echo of the terrible 2008 financial crisis. “Consumers need to separate falling stock prices and volatile trading from their actual bank deposits,” said Mark Neuman, financial advisor and CIO of Constrained Capital. “Your investments in the stocks of these banks could be at risk. Deposits with banks up to $250,000 are not at risk as long as the bank is FDIC protected,” he added.

The magic number the FDIC insures for many accounts is $250,000, yet the Fed’s depositor policy at the SVB has pledged to cover uninsured deposits to prevent a widespread financial meltdown. “In the end, if you have your money in SVB and it’s $250,000 or less, you’ll be fine. It’s insured. If you have more in there than that, they’ll probably protect you anyway,” Neuman added.

“[The Federal Reserve’s policy] sends a strong signal that depositors are recovering in the current environment and also removes the mark-to-market risk that many have been concerned about,” Morningstar analysts said in Monday morning’s research note. “These steps should go a long way in disrupting the current panic in the financial system, although we’re not sure there’s a way to reverse the psychological shift,” they added.

Which banks are in trouble?

Bank of the First Republic Shares plunged 75% on Monday after falling 35% last week, leading the way down for banks that were collateral damage from last week’s SVB bank run. The company’s trading was halted Monday morning due to the sharp fall in its share price, even after the bank received bailout liquidity from the Federal Reserve JPMorgan Chase On Monday. The financing brings the bank’s unused liquidity to $70 billion.

Regional banks are particularly affected by the carnage. From Monday noon, Comerica Bank, a Dallas, Texas-based financial institution, saw its share price fall 30%. KeyCorpwhich operates KeyBank, saw a similarly sharp drop, falling 28% by midday Monday. First Horizon Shares fell over 20% and trading halted. However, it is important to remember all of these banks are covered by FDIC insurance, so depositors within $250,000 need not panic that their cash is at risk of disappearing, even in the unlikely event that more banks fail.

In a statement released over the weekend, First Republic Bank founder Jim Berbert and CEO Mike Roffler told depositors that the bank’s liquidity positions are “very strong and its capital is well above the regulatory threshold for well-capitalized banks.”

Is my money safe at the bank?

While it’s understandably worrying to see everything red next to your financial institution’s ticker, if you have money at these banks, don’t take their stock price plunge as a sign that they’re going to fail. “From a depositor’s perspective, the government’s decision to stand behind all deposits also reduces the risk of further bank runs,” said Brand McMillan, chief investment officer of the Commonwealth Financial Network. “With a more robust system and an aggressively proactive government, there appears to be little systemic risk at this time. We will not see another Great Financial Crisis,” he added.

so what may You do when you have money in one of these banks? “At a time like this, consumers should focus on the things they can control,” said Matthew Goldberg, an analyst at Bankrate. “That means making sure they’re with an FDIC-insured bank and that their balances are within FDIC limits and that they’re following the FDIC’s coverage rules — so their money is protected in the event of a bank failure,” he added.

How much does the FDIC insure?

As for whether you should move your money, the best advice for assessing where to keep your savings is the same as ever. “Sunday was the day to change your clocks and check your smoke detectors to protect yourself and your home — so you’re prepared for an emergency,” Goldberg said. “Well, people need to use the recent bank failures as a reminder to check their FDIC deposit insurance coverage to make sure their money is with an FDIC-insured bank and that their balances are within FDIC limits and that they have FDIC Comply with rules,” he added.

Goldberg emphasized that depositors should use the tools provided by the FDIC. BankFind SuiteThe electronic deposit insurance calculator (EDIE) and the FDIC phone number (1-877-275-3342) are available to consumers, and you should use them to choose a financial institution to hold your savings (regardless of whether an imminent bank failure is worrying or not). You can search your bank by name in FDIC’s BankFind Suite and use EDIE to confirm that you are within FDIC limits. You should also confirm that you have followed FDIC insurance rules.

Neuman explained that it’s always a good idea to have multiple accounts at different banks, especially if you have $250,000 in cash. “The bigger money center banks like JPM and Citibank will be safer for larger deposits than the local bank around the corner, which may not be as much a ‘too big to fail’ bank,” he explained. Keep in mind, however, that mid-sized and smaller banks aren’t the only ones affected by the market’s caution towards healthcare financial institutions. Karl Schwab down 30% in the last five days, and Bank of America fell 14% in the last five days.

So while depositors shouldn’t panic, shareholders could hold their breath this week.

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