00:00:01
welcome to the best interest podcast
00:00:04
where we believe Benjamin Franklin's
00:00:06
advice that an investment in knowledge
00:00:08
pays the best interest both in finances
00:00:11
and in your life every episode teaches
00:00:13
you personal finance and investing in
00:00:16
simple terms now here's your host Jesse
00:00:21
Kramer hey guys what's up this is Jesse
00:00:24
Kramer speaking from the best interest
00:00:26
welcome to episode 51 of the best
00:00:29
interest podcast
00:00:31
let's see I'm recording this on Monday
00:00:32
March 13th and over the weekend I got a
00:00:35
lot of questions some from listeners
00:00:37
some from readers some from clients
00:00:39
about Silicon Valley Bank if you haven't
00:00:42
seen Silicon Valley Bank in the news
00:00:44
that's what we're going to be talking
00:00:45
about today we're going to break it down
00:00:46
in simple terms it's going to be pretty
00:00:48
educational even just something as basic
00:00:50
as how exactly does a bank work because
00:00:54
I think that most people including
00:00:56
myself up until you know a couple years
00:00:58
ago I didn't really understand the
00:01:00
business model of banks so we're going
00:01:01
to talk about that we're going to talk
00:01:03
about what made Silicon Valley Bank
00:01:05
unique in some ways and how that
00:01:06
uniqueness led to its failure we're
00:01:08
going to try to keep you as up to dat as
00:01:10
possible on what's been happening over
00:01:12
the last say 48 Hours again I'm talking
00:01:14
to you right now it is 143 p.m. eastern
00:01:17
time on Monday the 13th by the time this
00:01:20
comes out on Wednesday the 15th or by
00:01:22
the time you listen to it on the 16th or
00:01:24
17th or maybe over the weekend things
00:01:26
might have changed we'll see I've got an
00:01:28
article on the best interest that's an
00:01:30
article on the blog that I'm trying my
00:01:32
best to keep it up to date so as things
00:01:34
come out I'll try to throw some little
00:01:36
updates in there and explain exactly
00:01:38
what it means to you but let's get into
00:01:40
the good stuff let's talk about what
00:01:42
happened with Silicon Valley
00:01:45
[Music]
00:01:47
[Applause]
00:01:52
[Applause]
00:01:54
Bank okay so you're seeing Silicon
00:01:56
Valley Bank in the news people are
00:01:58
comparing it to the great financial
00:02:00
crisis in 2008 right banks are failing
00:02:03
what is going on so we're going to talk
00:02:05
about Silicon Valley Bank in simple
00:02:07
terms and we're going to start with how
00:02:09
do banks even work it's a very simple
00:02:12
question but it's fundamental that we
00:02:14
understand that before we can get into
00:02:16
the specifics of Silicon Valley Bank all
00:02:19
banks have assets and
00:02:22
liabilities now you're probably familiar
00:02:24
with both those ideas even if you don't
00:02:26
realize it the liabilities are deposits
00:02:29
just like the money that you deposit in
00:02:31
your savings account you are a depositor
00:02:34
at a bank I am a depositor at a bank and
00:02:37
since the Bank owes us that money back
00:02:40
plus interest it's a liability on the
00:02:43
bank's balance sheet now the bank also
00:02:45
has assets to offset those liabilities
00:02:48
they come in two forms loans and
00:02:51
securities so we'll break each of those
00:02:53
down banks give out personal loans
00:02:55
business loans mortgage loans Etc they
00:02:58
charge a higher rate to to the loan
00:03:00
borrowers say 6% then they pay to their
00:03:04
depositors say 1% so that difference
00:03:07
which in this case was 5% that's called
00:03:09
the net interest margin or n the Nim and
00:03:14
that's the main way that Banks make
00:03:15
money right they take in my and your
00:03:18
deposits and they pay us a small
00:03:20
interest rate but then they take our
00:03:22
deposits they loan them out to someone
00:03:23
else and they charge a higher interest
00:03:26
rate that difference that Nim some
00:03:28
people call it the spread that's the way
00:03:30
that most banks make money okay but
00:03:32
Banks outside of making loans they can
00:03:35
also choose to buy Securities using that
00:03:37
money right security is just a synonym
00:03:39
for a stock a bond a Reit those are all
00:03:43
Securities most commonly the Securities
00:03:46
that Banks buy take the form of
00:03:49
short-term high quality bonds just like
00:03:52
a three-month or a six-month us treasury
00:03:54
bill now most banks perform better when
00:03:58
interest rates rise
00:04:00
and the reason why is because they're
00:04:01
able to increase their Nim and make more
00:04:03
money off of their loans and therefore
00:04:05
generate more profit so the more a bank
00:04:08
relies specifically on loans the better
00:04:11
that bank does when interest rates rise
00:04:14
but if a bank relies heavily on
00:04:15
Securities specifically on bonds then
00:04:19
the opposite is true Rising interest
00:04:21
rates hurt bond prices and the bank's
00:04:24
Bond portfolio will also drop when
00:04:26
interest rates rise and this this is
00:04:28
worthy of a quick aside quick
00:04:30
explanation why do bonds drop in value
00:04:33
when interest rates rise simple
00:04:35
explanation let's go through it let's
00:04:36
say that you own a bond right now it
00:04:38
comes due in a year and it's paying you
00:04:41
2% great well guess what guys I could go
00:04:44
out right now and buy a a one-year Bond
00:04:46
on the open market that's yielding 4 and
00:04:49
a
00:04:49
half% so my question would be why would
00:04:52
I buy your bond that's yielding 2% if I
00:04:56
can just go buy a new one that's
00:04:57
yielding 4 A half% clearly in this case
00:05:01
your bond is worth less to me than a new
00:05:04
Bond it's just simple math right it's
00:05:06
it's just we get at supply and demand it
00:05:08
just makes sense your 2% bond is not as
00:05:11
appealing to me as a 4 and a half% bond
00:05:13
so if you're holding 2% bonds and then
00:05:16
you see interest rates rise to three
00:05:18
four 5% everyone's going to want a new
00:05:21
Bond they don't want your old Bond
00:05:23
that's yielding a lower amount that
00:05:25
happens to Banks if a bank is holding a
00:05:27
big Bond portfolio and maybe those bonds
00:05:29
don't come due for years in the future
00:05:31
and then interest rates rise the bonds
00:05:34
that the bank currently holds are going
00:05:36
to be worth less than when they bought
00:05:37
them granted the way that bonds work
00:05:40
you're always going to get your money
00:05:41
back at the end of the bond term bond
00:05:44
pricing is kind of intricate I'm not
00:05:46
going to get too much into the details
00:05:47
right now but suffice to say the reason
00:05:49
why Banks tend to hold shorter term
00:05:51
bonds is because they're less interest
00:05:54
rate sensitive right let's say I buy a$
00:05:56
thousand Bond and it's yielding 3% but
00:05:59
it comes due in a month well I'm only
00:06:02
going to get to capture that 3% interest
00:06:04
for 30 days I'm only going to capture
00:06:06
really like a 12th right one month out
00:06:08
of a year I'm going to capture a 12th of
00:06:10
that interest and so what if in the
00:06:12
interim interest rates rise to 4% my
00:06:15
bond really isn't that much affected I'm
00:06:17
going to get a little bit of interest
00:06:19
and then collect all my money back the
00:06:21
the ,000 I put in I'm going to collect
00:06:23
that back at the end of the month but if
00:06:25
a bond has a 10-year term well all of a
00:06:27
sudden it's pretty interest rate
00:06:29
sensitive because when rates rise from
00:06:31
say 3% to 5% that 2% difference is going
00:06:35
to be expressed over 10 years of the
00:06:37
bond term not just one month so Banks
00:06:41
tend to if they hold bonds they
00:06:44
generally the cautious thing to do is to
00:06:46
hold shorter term bonds okay but let's
00:06:50
talk now about Silicon Valley Bank
00:06:52
specifically so Silicon Valley Bank it's
00:06:54
specialized in helping tech companies
00:06:56
really startups um some biotech Lifey
00:06:59
science type companies Silicon Valley
00:07:01
digital tech companies and the bank
00:07:03
itself it's grown rapidly especially in
00:07:06
recent years because of that focus it
00:07:08
was you might have seen in the news the
00:07:10
16th biggest bank in the country it's a
00:07:12
serious bank now most tech companies
00:07:15
many tech companies in recent years have
00:07:16
raised large sums of cash through say
00:07:19
Venture Capital private Equity or by
00:07:22
going public and then they have to
00:07:24
deposit that cash somewhere a lot of
00:07:26
those deposits have gone to Silicon
00:07:27
Valley Bank being cash heavy those tech
00:07:31
companies didn't necessarily need loans
00:07:33
from Silicon Valley Bank so Silicon
00:07:35
Valley Bank they've got lots of cash
00:07:37
deposits they don't necessarily have a
00:07:39
bunch of loans that they need to be
00:07:41
making so what are they going to do with
00:07:42
that extra money they decided to buy
00:07:44
Securities it's what banks do however
00:07:48
the percentage of loans and the
00:07:50
percentage of Securities that Silicon
00:07:51
Valley Bank held was a bit different
00:07:54
than most banks most banks tend to be
00:07:56
loan heavy most of their assets are on
00:07:58
the loan side side svb Silicon Valley
00:08:01
Bank was unique in that it was
00:08:03
Securities heavy okay that makes a
00:08:05
difference so as interest rates Rose
00:08:08
over the past year a lot of the easy
00:08:10
money and Venture Capital private Equity
00:08:12
it dried up so many of silicon Valley's
00:08:15
customers its depositors those tech
00:08:17
companies they stopped making new
00:08:19
deposits into the bank if anything they
00:08:22
actually started taking money out of the
00:08:24
bank right I'm sitting on A10 million
00:08:26
but I got to run my business I'm not
00:08:27
getting any more venture capital so I'm
00:08:29
going to start pulling on that $10
00:08:30
million at Silicon Valley Bank to make
00:08:33
payroll to run my business all that kind
00:08:35
of stuff if anything you guys might know
00:08:37
this early stage tech companies they go
00:08:39
through a lot of cash right they
00:08:41
Hemorrhage cash by their nature so if
00:08:43
new money from venture capital or
00:08:45
private Equity isn't coming in then it
00:08:47
means that Silicon Valley Bank their
00:08:49
total deposits must have been decreasing
00:08:52
pretty rapidly that was true over the
00:08:54
past 10 years Silicon Valley Banks
00:08:57
concentration in tech companies it's
00:08:58
been really helpful for their business
00:09:00
it meant tons of new deposits were
00:09:02
flowing into the bank but that
00:09:04
concentration is a double-edged sword
00:09:06
and over the past year those deposits
00:09:08
have only been leaving the bank so now
00:09:10
remember those deposits they're not
00:09:13
sitting in dollar bills in a safe at the
00:09:16
bank instead those deposits have been
00:09:19
deployed they've been used as loans to
00:09:21
other bank customers and they've been
00:09:23
used to buy
00:09:25
Securities if too many depositors need
00:09:28
too much of their money back from the
00:09:29
bank all at the same time the bank might
00:09:32
be in trouble they're going to need to
00:09:33
take drastic action to raise that cash
00:09:37
and that's what svb Silicon Valley Bank
00:09:39
needed to do last week they needed to
00:09:41
raise cash and what they did was they
00:09:43
sold 21 billion that's billion with a B
00:09:47
they sold $21 billion of their bond
00:09:49
portfolio last Wednesday March 8th now
00:09:53
interest rates spiked early last week
00:09:55
after Federal Reserve chairman Jay
00:09:57
Powell he had a press conference and
00:09:58
that interest rate Spike what does that
00:10:00
do to bond prices that hurts bond prices
00:10:03
right so that lowered the value of
00:10:05
Silicon Valley Banks bonds they had to
00:10:07
sell them anyway to raise cash and they
00:10:10
sold them at an estimated $1.8 billion
00:10:14
loss in other words they purchased the
00:10:16
bonds for about $23 billion weeks and
00:10:19
months ago then they sold them last week
00:10:21
for $21 billion now a $2 billion loss
00:10:25
obviously that's a ton of money but
00:10:27
especially for a bank which is generally
00:10:29
considered a safe business model that's
00:10:33
a full year of profits probably more
00:10:35
than a full year of profits for Silicon
00:10:37
Valley Bank so for them to lose that
00:10:39
much money intentionally by selling
00:10:42
their bond portfolio it raises a really
00:10:44
scary question how much trouble does
00:10:47
Silicon Valley Bank how much trouble are
00:10:49
they in to do something so
00:10:51
drastic and then last week in another
00:10:53
attempt to raise money Silicon Valley
00:10:55
Bank they tried selling some of the
00:10:57
shares of their common stock right the
00:10:59
company itself owns shares of its common
00:11:01
stock and they attempted to sell about
00:11:05
30% of the bank's total value out into
00:11:08
the market which again that dilutes
00:11:10
current shareholders ownership by
00:11:12
30% that in itself is another drastic
00:11:15
measure that caused Silicon Valley
00:11:17
Bank's stock price to crash even further
00:11:20
than it already was crashing and that
00:11:22
attempt to raise more cash It ultimately
00:11:24
failed and it begs again a similar
00:11:26
question to the one we just asked why
00:11:28
would Silicon Valley Bank sell these
00:11:29
shares of stock now at about $200 per
00:11:33
share when they tried last week instead
00:11:35
of last year when the bank was valued
00:11:36
at600 or $700 per share it reeks of
00:11:41
desperation now that desperation that
00:11:43
weakness that caused a tital wave of
00:11:46
about $42 billion in attempted
00:11:49
withdrawals last Thursday March 9th
00:11:52
alone so as of close of business on
00:11:54
March 9th Silicon Valley Bank had a
00:11:56
negative cash balance of 900 58 million
00:12:00
with an M $958
00:12:03
million it owed depositors $ 958 million
00:12:07
dollar that it didn't have now this is
00:12:09
the way that bank runs tend to work I
00:12:11
saw a really good analogy from Ben
00:12:13
Carlson in an article I read today he
00:12:15
goes imagine if you went to Planet
00:12:16
Fitness and every single member of the
00:12:19
gym showed up at the same time you'd
00:12:21
have a pretty big problem there at the
00:12:23
squad rack right the way gym memberships
00:12:25
work is they only expect I don't know 5
00:12:28
10 20% of their members to be there at
00:12:30
any given time and that's the way that
00:12:31
everybody gets to use the gym Banks work
00:12:34
the same way they only have a small
00:12:37
percentage of the actual cash deposits
00:12:39
on hand everything else is being loaned
00:12:41
out everything else is in the form of
00:12:43
Securities if everyone comes at once
00:12:45
demanding their cash the bank might be
00:12:47
in some trouble that's a bank run you
00:12:49
might have seen this scene from It's a
00:12:51
Wonderful Life it's a great Learning
00:12:53
lesson I'm going to play the audio for
00:12:55
you right here the money's not here well
00:12:58
your money's in Joe's house that's right
00:13:00
next to yours you're lending them the
00:13:02
money to build and then they're going to
00:13:03
pay it back to you as best they can what
00:13:04
are you going to do four close on them I
00:13:06
got
00:13:07
$242 in here and $242 isn't going to
00:13:11
break anybody but my husband hasn't
00:13:13
worked in over a year and I need money
00:13:15
how am I going to live until the bank
00:13:17
opens I got dror bills to pay I need
00:13:19
cash I can't keep back kids on fa when
00:13:22
depositors lose confidence in a bank
00:13:24
they want their money back this
00:13:25
compounds the bank's problems even
00:13:27
further it's exactly what happened to
00:13:29
Silicon Valley bank now in the Great
00:13:32
Depression many banks completely failed
00:13:35
and it left their depositors hung out to
00:13:37
dry and that's when the federal
00:13:39
government decided to step in and they
00:13:41
passed the Banking Act of 1933 which
00:13:44
created the Federal Deposit Insurance
00:13:46
Corporation or FDIC the FDIC ures Bank
00:13:49
deposits up to
00:13:51
$250,000 so you me every American with
00:13:54
money at a bank is insured up to
00:13:57
$250,000
00:14:00
the FDIC they stepped in on Friday March
00:14:03
10th and they took over Silicon Valley
00:14:05
Bank depositors at svb they are safe up
00:14:09
to
00:14:10
$250,000 recently on Sunday the 12th the
00:14:13
federal government said you know what
00:14:15
not only are they safe up to
00:14:16
$250,000 they're also safe basically in
00:14:20
full the federal government is going to
00:14:21
make depositors whole we're going to get
00:14:24
into why they did that here in a second
00:14:26
but it's important to realize the
00:14:28
Federal government is not bailing out
00:14:30
the bank itself the bank is going to
00:14:33
cease to exist it is not going to be
00:14:35
operating if you ran the bank you are
00:14:38
out of a job if you owned the bank's
00:14:40
stock you are not going to get your
00:14:42
money back if you owned one of the banks
00:14:44
bonds you are not going to get your
00:14:46
money back the federal government is
00:14:49
only helping out the depositors at the
00:14:51
bank it is not keeping the bank in
00:14:53
business so there just a Nuance there
00:14:55
when it comes to the term bailout when a
00:14:58
bank fails the way that Silicon Valley
00:15:00
Bank failed there are two ways two
00:15:03
traditional ways that a rescue might
00:15:05
occur the first one we kind of already
00:15:07
talked about it is that the federal
00:15:08
government steps in in some way perhaps
00:15:11
steps in above the $250,000 limit
00:15:14
perhaps they step in and actually give
00:15:16
the bank money to stay in business
00:15:19
that's what happened in the great
00:15:20
financial crisis when about $200 billion
00:15:24
was given and or loaned to Banks to
00:15:26
ensure that the banks themselves stayed
00:15:28
Alive Now on Sunday March 12th treasury
00:15:32
secretary Janet yelen said that the
00:15:34
federal government would not pursue that
00:15:37
course of action meaning the federal
00:15:39
government is not going to step in to
00:15:41
keep Silicon Valley Bank itself in
00:15:44
business right just to reiterate that
00:15:47
they are stepping in as we found out at
00:15:49
around 6:30 on Sunday March 12th they're
00:15:51
stepping in to fully protect all
00:15:53
depositors who as of today Monday March
00:15:56
13th had full access to to their money
00:15:59
and no losses associated with the
00:16:01
resolution of Silicon Valley Bank would
00:16:03
be borne onto the taxpayer that's
00:16:05
another thing interesting point here the
00:16:07
federal government is planning on
00:16:09
raising money via an assessment against
00:16:12
other Banks basically saying hey
00:16:14
everyone in the banking industry you
00:16:15
have to chip in to make silicon Valley's
00:16:19
depositors whole I'll be honest with you
00:16:21
guys I'm not really sure how this is
00:16:23
going to play out because if I was
00:16:24
running a healthy bank and I was doing
00:16:26
everything right I wouldn't feel great
00:16:30
about having to chip in some fund that
00:16:32
keeps Silicon Valley Bank alive they
00:16:35
screwed up why is it my problem anyway
00:16:38
that's something for the federal
00:16:39
government and banking Regulators to
00:16:41
figure
00:16:42
out but let's get to a second
00:16:44
possibility a way that Banks could be
00:16:46
bailed out and we'll see what happens
00:16:49
this week with Silicon Valley Bank it
00:16:50
might still be possible where a private
00:16:53
institution steps in and agrees to buy
00:16:57
Silicon Valley Bank likely at you know
00:16:59
Pennies on the dollar at a steeply
00:17:01
discounted price this is what happened
00:17:04
during the great financial crisis in a
00:17:06
few different ways famously Warren
00:17:08
Buffett stepped in he injected cash into
00:17:11
Goldman Sachs and into Bank of America
00:17:14
in exchange for a large ownership share
00:17:17
of those two Banks right similar to the
00:17:20
way that Silicon Valley Bank really
00:17:21
needed cash last week golden Sachs and
00:17:24
Bank of America really needed cash
00:17:26
during some parts of the great financial
00:17:28
crisis and Warren Buffett stepped in and
00:17:29
said sure you can have my cash in
00:17:31
exchange for ownership and that turned
00:17:34
out to be a wonderful investment for
00:17:36
Warren Buffett now famously Warren
00:17:39
Buffett said no to Leman brothers and he
00:17:42
said no to AIG Leman Brothers failed
00:17:46
completely and AIG ended up getting US
00:17:49
Federal bailout money but here's a good
00:17:52
clip of Warren Buffett talking about
00:17:54
saying no to lhan and to AIG uh this
00:17:58
goes back a little before the Panic
00:18:00
Leman was looking for money at that time
00:18:03
and they approached
00:18:05
birkshire I came down to the office uh
00:18:08
at night made these little notes on here
00:18:11
of things that were red flags and you'll
00:18:13
see a number of pages here and you had
00:18:15
to get to page 150 or 200 but there was
00:18:19
there was clearly a lot of trouble uh
00:18:22
there by the time I got through I
00:18:24
decided that that uh we were not in a
00:18:27
position to mondy to lemman I was still
00:18:30
wondering what was going on obviously
00:18:32
with AIG in New York but there was
00:18:34
nothing to be done AIG uh was just going
00:18:37
to run out of money big time uh in the
00:18:40
next day or two and uh Leman was going
00:18:42
to go under unless something was
00:18:44
happening that I didn't know about the
00:18:46
important point is that Silicon Valley
00:18:48
Bank depositors and by proxy American
00:18:51
depositors as a whole are made to feel
00:18:53
confident that they'll receive 100% of
00:18:56
their deposits back because let's get
00:18:59
into this idea of what happens if no
00:19:01
sort of bailout were to occur there's
00:19:04
really no good answer you know should
00:19:06
the federal government have stepped in
00:19:07
to bail out Silicon Valley Bank in some
00:19:09
way shape or form giving it money to
00:19:11
make its depositors whole it's a hard
00:19:13
question because if the government does
00:19:16
bail out Silicon Valley Bank which we we
00:19:18
saw that they did to some extent it
00:19:21
reinforces the following precedent hey
00:19:23
American Banks do whatever the heck you
00:19:26
want be irresponsible cut corners
00:19:28
squeeze profits out of your customers
00:19:30
overc concentrate your business if you
00:19:33
screw up we'll have your back you'll pay
00:19:35
no consequences okay that's a dangerous
00:19:38
precedent to set it's called moral
00:19:39
hazard it's the lack of an incentive to
00:19:42
protect against risk but if the
00:19:45
government does not bail out Silicon
00:19:47
Valley bank then it sends this message
00:19:49
hey attention all banks attention all
00:19:51
depositors all looners all investors in
00:19:53
Bank stocks you are on much thinner ice
00:19:57
than you previously assumed and that
00:20:00
outcome could cause a crisis of
00:20:02
confidence where perfectly healthy banks
00:20:04
are called into question as Warren
00:20:06
Buffett said fear is extraordinarily
00:20:09
contagious right how do I know that my
00:20:11
bank isn't the next Silicon Valley Bank
00:20:14
maybe I should go to my bank and pull
00:20:15
out all my money so then maybe a second
00:20:18
run on a questionable Bank occurs and
00:20:21
then a third and a fourth one but maybe
00:20:23
on some safer Banks next thing you know
00:20:25
boom boom boom the dominoes are falling
00:20:27
and banks are failing all over the
00:20:29
country this would be so-called
00:20:32
Financial contagion an outcome that
00:20:34
would be far worse than any single Bank
00:20:36
failing avoiding that Financial
00:20:38
contagion that's a must and it's 100%
00:20:41
the reason why the federal government
00:20:42
stepped in in 2008 and it's a big reason
00:20:45
why we saw the federal government step
00:20:46
in yesterday to save the depositors at
00:20:49
Silicon Valley Bank so now an important
00:20:52
question are other banks in trouble I'm
00:20:55
sure some might be but as we noted
00:20:58
earlier Silicon Valley Bank is unique in
00:21:00
a few ways those unique features
00:21:03
directly led to its failure most other
00:21:05
banks are unlike Silicon Valley Bank
00:21:08
they're actually stronger today than
00:21:10
they were one year ago and remember most
00:21:12
banks are loan heavy Silicon Valley Bank
00:21:16
is Securities heavy it's easier to
00:21:19
profit from loans when interest rates
00:21:20
rise the banks that are loan heavy
00:21:23
they're stronger now on average than any
00:21:25
time in the past decade unlike Silicon
00:21:28
Valley Banks concentration in tech
00:21:31
company customers most banks have a
00:21:33
diverse portfolio of customers they're
00:21:36
not exposed to the same concentration
00:21:38
risk as Silicon Valley Bank on merits
00:21:40
alone the US banking system is not in
00:21:43
trouble the only fear literally the only
00:21:46
fear is actually fear itself right any
00:21:49
sort of financial contagion that could
00:21:51
occur it won't be based on banking
00:21:53
fundamentals but instead would be caused
00:21:55
by the collective fear of American
00:21:58
depositors our leaders have to ensure
00:22:00
that that won't happen and that's why
00:22:03
they stepped in to save depositors at
00:22:05
Silicon Valley Bank to make sure that
00:22:07
everybody was made
00:22:08
whole okay so at this point that is a
00:22:11
pretty good explanation of how Banks
00:22:13
work what happened at Silicon Valley
00:22:15
Bank what we might see over the next few
00:22:17
days that said check out the article
00:22:21
down in the show notes on best interest
00:22:22
blog check out the blog post if you want
00:22:24
to see up to-date stuff as it comes out
00:22:27
this week thanks for listening
00:22:30
guys thanks for tuning in to this
00:22:32
episode of the best interest podcast if
00:22:34
you have a question for Jesse to answer
00:22:36
on a future episode send him an email at
00:22:39
Jesse bestin interest. blog again that's
00:22:42
Jesse best bestin interest. blog did you
00:22:45
enjoy the show subscribe rate and review
00:22:48
the podcast wherever you listen this
00:22:50
helps others find the show and invest in
00:22:53
knowledge themselves and we really
00:22:55
appreciate it we'll catch you on the
00:22:56
next episode of the best best interest
00:22:59
[Music]
00:23:01
podcast the best interest podcast is a
00:23:04
personal podcast meant for education and
00:23:06
entertainment it should not be taken as
00:23:08
Financial advice and is not prescriptive
00:23:11
of your financial
00:23:12
situation
