During a week when two bank failures roiled the financial world, Massachusetts’ bank CEOs found themselves racing to reassure nervous customers while also striving to take advantage of the growth opportunities the crisis created.
The Federal Reserve has launched a review of its own supervision of Silicon Valley Bank following the bank’s failure. A top community bank group is urging the central bank to differentiate small and large banks in its response.
The bank, which has a major presence in Massachusetts after buying Boston Private Bank in 2021, failed after depositors – mostly technology workers and venture capital-backed companies – began withdrawing their money creating a run on the bank.
In a few days, Brookline Bank will no longer be a member of the state’s Deposit Insurance Fund, a private, industry-sponsored insurance fund that insures all deposits above FDIC limits at member banks. It’s only the fourth such departure since 1934.
