WELLESLEY, MASS. (WHDH) - Customers lined up outside Silicon Valley Bank branch in Wellesley for hours on Monday to pull cash out of their accounts after the California-based bank collapsed.
The collapse of SVB is one of the largest since the financial crisis since 2008, and although President Joe Biden tells Americans the U.S. banking system is safe, some aren’t buying it.
“I think better safe than sorry,” one SVB customer told 7NEWS.
SVB, which also has a Newton Branch, collapsed late last week, and this is the first chance Massachusetts customers have to get their money.
One woman standing in line told 7NEWS she works for a community development corporation that helps build affordable housing and plans to move their money elsewhere.
“It’s just a matter of precaution,” said Vanessa Calderon-Rosdo. “I think I feel confident that the federal government stepped in, and that gives me a lot of relief. On the other hand, I want to make sure I have access to the cash.”
On Monday morning, Biden spoke from the white house to ensure customers of SVB and all U.S. banks that there is nothing to worry about.
“Americans can have confidence that the banking system is safe,” he said. “Your deposits will be there when you need them.”
The government says it’s guaranteeing all SVB bank customers can get their money, even if it’s more than the normal $250,000 maximum.
The Biden Administration says it’s not bailing out the bank, however. The money comes from a fund created by bank fees to handle situations like this one.
While customers are protected, Biden said investors in the bank are not.
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