Local expert says educate yourself and don’t panic when it comes to recent banking failures

TOLEDO, Ohio (WTVG) - The fallout continues after Silicon Valley Bank and Signature Bank collapsed leading to turmoil within the nation’s financial system.

The Justice Department and the Securities and Exchange Commission are in the early stages of their investigations. Regional banks stocks saw large sell offs on Wall Street Monday while Tuesday showed signs of recovery. Federal agencies have stepped in to limit the impact to the nation’s financial system.

So what does all this mean to you, and how do your protect your money? We talked with a local expert who has some simple advice. He says have a plan in place for your money, know what’s insured and what’s not and don’t panic.

“For the average Toledoan, there is no reason to panic. But it is a good time for everyone to learn,” said Alan Lancz, an investment advisor in Toledo with decades of experience

Lancz says it’s important to remember that your account is insured by the Federal Deposit Insurance Corporation, or the FDIC, for up to a quarter million dollars if an insured bank fails. If you have more money in your account than the FDIC covers, Lancz has a suggestion.

“If you have more than $250,000 in your account, it is a good idea to have your money in two banks or a credit union and a bank,” said Lancz. “It could be a local or regional bank and a national bank.”

Don’t assume what happened to customers at the failed banks will happen again.

“Just because the government covered people with more than $250,000 in deposits this week doesn’t mean they’ll do it again in the future,” said Lancz. “There is no guarantee.”

The failures will likely lead to changes for the industry.

“We’re going to see more regulations, especially for smaller banks and even regional banks,” said Lancz. “Governance needs to be in place. It was not with Silicon Valley Bank or Signature Bank of New York.”

And what about investing in the banking sector right now?

“There are going to be opportunities for investors who are smart enough to take advantage, but just buying across the board right now is very dangerous,” said Lancz.

Lancz says it is important to educate yourself about what’s covered and what’s not covered by the FDIC in your accounts. He says the best way to do that is to speak with someone at your bank or credit union and get the answers in writing.

See a spelling or grammar error in our story? Please include the title when you click here to report it.

Copyright 2023 WTVG. All rights reserved.