If you've been slightly awake, you noticed the cryptobank Silvergate failed, as I announced here: https://poal.co/s/Bankless/620964 Now [Silicon Valley Bank (SVB) has failed](https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html) (apologies for the JYT link). More than 50% of startups and tech companies kept money there. SVB had 175 billion in deposits, and 97% of them were not insured by the FDIC. Tens of thousands of startups and tech companies (like Heroku, Brex, etc.) aren't going to be able to make payroll and will be furloughing exempt employees before Monday. They also may not be able to pay their bills, meaning shutting down is a risk. This was caused by a second bank run. This time instead of crypto exchanges making a run on Silvergate, it was VC's and startups making a run on Silicon Valley Bank. SVB stupidly invested assets in long-term Treasuries and mortgage backed securities (MBS's) before the fed started hiking rates and didn't bother to take a hedge out against the risk of rising rates. Their treasury team must be severely retarded, but it is what it is. The ripple effects from Silicon Valley Bank could will be enormous, and the contagion could easily spread to other banks. You should be wary of banks that have exposure to longer term Treasuries and MBS's that haven't taken out interest rate hedges. You should also be worried about banks with deposits concentrated in individual sectors (like VC or crypto). It's not just their deposits that are the issue, it's the lines of credit they extended. A lot of startups are going to die.