Will the SVB banking crisis hurt Iowans? What happened? Bank Iowa's CEO breaks it down.
The collapse of Silicon Valley Bank (SVB) and subsequent takeover by Federal regulators sparked concern in the banking industry causing the DOW to lose 500 points early Wednesday. Jim Plagge, the CEO of Bank Iowa explains what happened, why it happened, and what impact this will have on Iowans.
Plagge explains why record deposits in 2021 meant banks across the country were flush with cash. Why SVB and other banks invested that cash into treasury bonds and mortgage-backed securities, and how rate increases and large cash withdrawals led to a perfect storm.
Plagge also explains FDIC Insurance…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.