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Update on Recent Events Regarding Silicon Valley Bank

Published: March 13, 2023

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.

Important Disclosures

This material is provided for informational or educational purposes only and should not be construed as investment, accounting, tax or legal advice. Always consult a financial, tax and/or legal professional regarding your specific situation. This communication is not intended as a recommendation or as investment advice of any kind. It is not provided in a fiduciary capacity and may not be relied upon for or in connection with the making of investment decisions. Nothing herein constitutes or should be construed as an offering of advisory services or an offer to sell or a solicitation to buy any securities or a recommendation to invest in any specific investment strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future returns. The views expressed herein are as of a particular point in time and are subject to change without notice. The information and opinions presented herein are general in nature and have been obtained from, or are based on, sources believed by Klingenstein Fields Advisors (“KF Advisors’) to be reliable, but KF Advisors makes no representation as to their accuracy or completeness. Although the information provided is carefully reviewed, KF Advisors cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided. KF Advisors represents two investment advisers registered with the Securities and Exchange Commission: Klingenstein, Fields & Co., L.P. and KF Group, LP. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.