Collapse Of Silicon Valley Bank Prompts Long Lines At Wellesley Bank

Photo: Kim Tunnicliffe / WBZ NewsRadio

WELLESLEY, Mass. (WBZ NewsRadio) — News of Silicon Valley Bank's collapse is making for some nervous clients on the eastern seaboard, with long lines stretching at regional banks that have been at the heart of recent drastic stock falls.

Coupled with the fact San Francisco-based First Republic Bank's shares were down over 60 percent at market close on Monday, a number of customers set out to make withdrawals, though a number of them walked away with their minds changed.

At one FRB location in Wellesley, WBZ's Kim Tunnicliffe ran into a crowd of customers looking to get their questions answered on the collapse of SVB and the New York-based Signature Bank, and what that means for their savings.

"Just a little nervous and just curious right now. I'm just checking in to see what's going on," said one client named Patty.

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In response to the push for withdrawals, FRB says it has further strengthened and diversified their liquidity position. Some customers were convinced, and said they were encouraged to leave their money where it is.

"They turned us around, we came here to withdraw and no we're going to buy stock," said one customer.

Easing the fears of depositors, United States regulators remind customers that some accounts may be protected by the Federal Deposit Insurance Corporation.

WBZ's Kim Tunnicliffe (@KimWBZ) reports.

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