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1 Valuable Lesson The SVB Collapse Taught Growth Investors

The banking industry, government regulators, and investors alike are still processing the March 10 collapse of SVB Financial, the parent company of Silicon Valley Bank (SVB). It was the second-largest bank failure in U.S. history, with $175 billion in customer deposits on the line. 

But this crisis had one unique (and worrying) feature: Just 6% of those deposits fell within the $250,000 deposit insurance limit mandated by the Federal Deposit Insurance Corporation (FDIC). Most of SVB’s customers were technology companies, investors, and high-net-worth individuals, which meant the majority of them faced the prospect of a total loss.

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This post originally appeared at The Motley Fool.