You might have thought that the failure of a bank named for a tech hub in California wouldn’t have an impact locally, however, the Silicon Valley Bank had a location in a West Conshohocken office building (One Tower Bridge).
While it is not known whether any local businesses had accounts, the bank focused on tech startups funded through venture capital. Conshohocken and West Conshohocken has a lot of these type of businesses.
The Philadelphia Inquirer published an article on March 10th about the bank’s collapse. From the article:
The run on Silicon Valley Bank wasn’t like bank runs in the early 1930s Depression, when panicked depositors lined up in New York and Philadelphia to retrieve their life savings, only to watch the banks run out of cash and shut — sometimes forever, leaving them broke.
Deposit insurance has mostly eased that problem, at least for those of us with less than the federal insured limit of $250,000 in our accounts.
And yet, on Thursday, depositors couldn’t get their money out of Silicon Valley Bank fast enough. Systems crashed; reserves drained. On Friday morning, state and federal regulators stepped in, closing offices from Silicon Valley’s Santa Clara headquarters to its local outpost in West Conshohocken. Regulators will spend the weekend trying to fix what’s left.
You can read the full article here.