Good afternoon,

The swift demise of Silicon Valley Bank sent shock waves across the banking sector and broader financial markets.

RBC Wealth Management’s Global Portfolio Advisory Committee examines regulators’ fast action to stem the damage and what the “costs” of that may be, as well as highlights how the entire episode may cause the Fed to rethink its rate hiking plans. Gerard Cassidy importantly points out that “Not only will the FDIC-insured depositors of SVB be backstopped (those with deposits up to the standard $250,000 level), but the three regulators collectively determined that uninsured depositors with accounts much larger than that will be made whole as well. That latter group represents roughly 90 percent of the bank’s deposit base.” Cassidy wrote, “This is an important element of the plan and should provide confidence to depositors in other institutions.”

I believe you will find this Market brief informative, especially in light of the recent news. Please continue to call us as our entire team stands ready to listen and address any questions that you may have. We can also be made available to speak with any family members or friends who may need reassurance during these times.

Best,

Devin