Local expert: Most don’t need to worry about FDIC limit

Investors nationwide are continuing to react to the recent financial problems of Silicon Valley Bank and Signature Bank. Some are concerned that the issues could lead the federal government to make changes in FDIC policies. We talked to a local financial expert about what the government is likely to do to calm those fears. I think what they really want to do is prevent people from panicking and money and taking their money completely out of the banks. That was the biggest problem for Silicon Valley Bank is that the number of large depositors above the FDIC limit removed their money and mass and caused the bank to fail as a result of that. So the federal government is trying to assure depositors that they don't need to move their deposits and therefore not cause the cascading effect that we saw with Silicon Valley Bank. Andorn says the average person doesn't have deposits that would be in excess of the FDIC limit.

He also says that the programs the federal government has put in place to protect banks should calm fears in the market.

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