The startling collapse of Silicon Valley Bank is making some people and businesses leery of stashing their cash with smaller lenders, which unlike Wall Street’s financial behemoths aren’t considered “too big to fail.”
“If you use a regional bank as your operating bank, you should have one of the Big Four as a backup bank,” said Ushir Shah, [co-founder, CFO & CTO] of Known Holdings, an investment platform for [new majority] fund managers.
“As much as I love the community banking aspect of our system, when there’s a crisis it’s nice to have a relationship with a Big Four bank to be able to swing things over,” he said.