WAUSAU, WI (WSAU) — A local financial advisor says residents in Central Wisconsin don’t have much to worry about in the face of the Silicon Valley Bank collapse last week.
Meryl Kelch of Kelch and Associates says he knows that Banks and Credit Unions around Central Wisconsin are resilient to these situations. “All the banks around here, we do weird stuff,” said Kelch, tongue-in-cheek. “We make conservative loans to houses that actually exist [and are] conservatively valued. [We lend] to businesses that actually make money, and the bankers live here.”
He says SVB simply ran out of cash, especially in the days leading up to last Friday when customers began pulling their money out amid reports that a collapse could be coming. While most retail customers will be covered thanks to FDIC protection, those most impacted will be business customers and others who held bonds with the institution.
“Especially those that had less than $250,000. The FDIC will guarantee that. But those who had money in there and were participating in the bond program and those types of assets. they may not be. We’ll find out,” added Kelch.
Kelch says he’s not completely clear on the issues that plagued the bank yet but says the collapse can likely be linked to “unwise management.” He does plan to talk with others who do know more about the situation so he can have a better understanding of it.
The collapse of SVB is the largest banking failure since the financial crisis of 2008.
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