We understand that recent events in the banking industry may be causing you concern, particularly regarding Silicon Valley Bank (SVB), which was closed and taken over by the California regulators as a result of “inadequate liquidity and insolvency.” Sunday evening, bank regulators announced a plan to provide liquidity so that depositors of SVB and Signature Bank in New York, which was also closed, will have access to their funds. We are reassured by the banking regulators’ commitment to providing stability to the industry, including the Federal Reserve’s announcement that it is creating a Bank Term Funding Program to support institutions impacted by the SVB failure. We believe this will help to steady the markets, but some volatility may occur as the markets react.
We want to let you know that, as always, we are monitoring the markets, banking institutions, and your accounts. All financial organizations with whom we work, including Schwab, who we use as custodian for many of our clients’ accounts, have been carefully vetted and selected by Klingenstein Fields Advisors (KF Advisors). Schwab takes careful measures to protect your assets, including segregation of client assets and extra private insurance coverage beyond that provided by the Securities Investor Protection Corporation (SIPC). This document provides additional detail on these measures. In addition, for FDIC-insured bank deposits you may have at Schwab Bank or elsewhere, each account per bank is insured by the FDIC for $250,000, helping to safeguard your funds.
KF Advisors is here to support you. We will continue to watch unfolding events closely and will act as necessary. We encourage you to reach out with any questions or concerns you may have, and we will continue to keep you updated regarding the markets, our thinking, and any changes we are considering making.