A small business owner and social media influencers are among depositors who lost millions when the feds shut down Silicon Valley Bank.
On Friday, federal regulators shut the bank down to protect insured deposits after the bank’s parent, SVB Financial went belly up.
The Federal Deposit Insurance Corp (FDIC) insures bank accounts up to $250,000. Depositors with more than $250K in their accounts will lose their cash.
Ashley Tyrner, the CEO of a Boston-based health and wellness company, told The NY Post she has over $10 million sitting in her bank account.
Tyrner, the founder of FarmboxRx, has been frantically trying to reach her private banker at SVB without success.
She told The Post that it was “the worst 18 hours of my life.”
Investor Kevin O’Leary blames poor asset management for the bank’s losses.
“I’ve told all of my portfolio companies, I do not want to see more than twenty percent of any of our liquid assets in any one institution,” O’Leary told Fox News on Friday.
On Friday morning, building managers at Silicon Valley Bank’s Manhattan branch called the police after investors showed up and demanded their cash.
The bank’s CEO begged investors to “stay calm” and not “panic” after SVB shares plunged 60% on Wall Street Thursday.
Hedge fund investors called on the US government to step in and bail out Silicon Valley Bank. In 2009 former President Obama bailed out Wall Street with a $700 billion economic stimulus plan.
