|A WSFS iexecutive is telling customers the bank is not facing problems that led to the seizure of two banks.|
Executive Vice President and Chief Consumer Banking Officer Shari Kruzinski wrote in an email message to customers that the decision by the Federal Deposit Insurance nCorp. to take control of Silicon Valley Bank and Signature Bank was “part of the FDIC’s role to ensure a stable banking system.”
“We understand you may have some concerns or questions about what this means about WSFS and your money. WSFS does not have any exposure to Silicon Valley Bank or Signature Bank,” Kruzinski wrote. “You should feel confident that WSFS has been here for nearly 200 years, and we are well-positioned for the future, WSFS is financially strong, well-capitalized and has access to ample liquidity. Our diversified business model, solid asset quality performance and sound underwriting positions us well to support our customers and communities.”
The FDIC closed Silicon Valley and Signature after depositors withdrew deposits at a rapid Signature reported that customers withdrew $10 billion. out of the bank. Many customers had deposits in Silicon Valley in excess of the insurance limit of $250,000.
Banks pay into a federal insurance fund that guarantees deposits up to the quarter of a million dollar mark.
Silicon Valley had ties to tech companies, while Signature had attracted customers with ties to cryptocurrency. The two bank failures were the first since the financial crisis of 2008-2009.
The Biden administration moved aggressively to release tools to ensure banks had adequate liquidity.
WSFS is based in Wilmington and survived through the Civil War and many financial panics.