🔐 The winners will be the big banks. In the aftermath of the demise of three banks called "Si..." the losers will be their shareholders, tax payers, and the tech startup ecosystem. Is this what we wanted?
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Silicon Valley Bank collapse causes ripple effects in banking industry
After the recent collapse of Silicon Valley Bank, many companies and entrepreneurs have been seeking a safe haven. As a result, the largest banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, have seen an influx of deposits according to this Bloomberg article.
“Everyone is asking, ‘Where should we bank? Where is it safe to bank?’” Ryan Gilbert, founder of Launchpad Capital, told Silicon Valley Business Journal. “When you think you bank with the safest bank in your ecosystem, and they disappeared overnight, you realize it’s impossible to predict an earthquake.” He moved his account to Chase.
This is the long term consequence from the collapse of the three banks called “Si…” Three mid sized, niche banks have been consumed by the big boys. Good for the markets and the tech sector? Who knows, but my gut tells me “no.”