The last week has been a tough one for banks.
Silicon Valley Bank, based in California, collapsed March 10 after state regulators shut down operations. The bank failed to raise enough capital to sustain operations and the Federal Deposit Insurance Corp. took over. The bank partnered with more than half of venture-backed tech and healthcare companies, and many of the companies rushed to move funds as news of the collapse spread.
The treasury, Federal Reserve and FDIC issued a joint statement March 12 that all depositors would be fully protected and have access to their money March 13 in an effort to restore trust in the nation's banking system. Many of the companies with money invested worried about having access to uninsured funds so they could make payroll and continue operations.
The federal government announced in the same statement New York City-based Signature Bank was closed by the state March 12, but promised to protect depositors.
While depositors are being protected, investors in the banks are not. The federal government has removed senior management for both banks and assured the losses wouldn't be covered by taxpayers.
Bank stocks across the board are dropping. First Bank shares dipped 60 percent in early trading March 13, according to The Wall Street Journal, while other regional banks also saw sharp declines. Credit Suisse stock prices also hit a record low.
Read more about how Silicon Valley Bank collapsed from The New York Times here.