MCLENNAN COUNTY, Texas (FOX 44) — Banks all over the nation are holding their breath as the recent collapse of a national bank has sent shockwaves across the financial industry. It’s leaving many worried about what’s next to come.
On Friday, March 10, the Silicon Valley Bank collapsed and was taken over by federal regulators – becoming the largest U.S. Bank to fail since the 2008 financial crisis.
Silicon Valley is known to host many of the worlds top crypto and tech investors.
The Federal Deposit Insurance Corporation or the FDIC, is now in control of the banks to regulate them.
FOX 44 News spoke with David Littlewood, CEO and Chairman of TFNB Your Bank for Life to learn more about the growing banking concerns here in Central Texas.
“There will be a knee jerk in all banks, including us and the banks that operate safely, safely, that didn’t misbehave. We’ll pay a price monetarily, and through regulatory overkill, because of these misbehaviors,” said Littlewood.
Although Littlewood reassures that community banks are mostly safe, there are concerns of higher regulations and prices from the FDIC as a result of the collapse of a larger bank like Silicone Valley.
He also took the time to highlight that local banks operate for the good of communities, diversifying their risks in a conservative way – ultimately aiding peoples’ financial growth and driving the economic forces of the community.
“If you bank with the community bank, you’re going to know the decision makers at those banks. You can form a relationship with those banks. They will get to know you as a customer. You will get to know them as a resource. And it’s a reciprocal relationship where we help each other,” shared David Littlewood.
TFNB Your Bank for Life has five locations across McLennan County.