What are the local impacts of Silicon Valley Bank collapse?
WEST CONSHOHOCKEN, Pennsylvania (WPVI) -- The Justice Department and Securities and Exchange Commission are probing the collapse of Silicon Valley Bank, two people familiar with the situation told ABC News.
The probes, which are separate, are in the preliminary stages and it is not clear whether any wrongdoing has been committed. It is not uncommon after a large public collapse of a bank or company for the Justice Department or SEC to step in and investigate.
The Justice Department and SEC both declined to comment. The news of the probes was first reported by The Wall Street Journal.
Silicon Valley Bank (SVB) has a branch in West Conshohocken. There are many startups in our area, so the ripple effect from Friday's collapse was certainly felt across the Delaware Valley.
SEE ALSO: Experts weigh in: How to protect your money in wake of SVB, Signature Bank collapse
"I wouldn't say that lives were on the line, but certainly livelihoods were on the line," said Christopher Molineaux, president and CEO of Life Sciences Pennsylvania, a statewide trade association that represents almost 900 organizations.
Many of the organizations were affected by the collapse of SVB.
"I spoke with a lot of our member companies over the weekend. They jumped into action, started to develop their contingency plans and then, you know, received the great news on Sunday night that the FDIC and Treasury and the Fed had stepped in, which was really unfortunate, but absolutely necessary for them to be able to access their cash Monday morning," said Molineaux.
He says some were able to move their funds, others were not.
"Some companies were exploring additional investors, getting investors to step up and be ready as a backstop if they, if they could not meet their payroll obligations, you know, talking to insurance companies for sure," said Molineaux.
SEE ALSO: US regulators take steps to make sure SVB customers can access all their money
Action News reached out to Silicon Valley Bank's West Conshohocken branch on Front Street, and while they weren't able to comment on the situation, they said they are open for business. Unfortunately, though, Molineaux said many of the organizations he works with, have learned a difficult lesson.
"The banks are also buying securities, so they are taking your money and they're buying securities to grow their revenue. You want to be sure that they're buying securities where you have your money is in a bank where your money can be liquidated or where you can access it. I think the big picture take away is have a contingency plan and pay more attention to where you have your money," said Molineaux.
