Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Investing

People have been pulling money from banks since the Silicon Valley Bank debacle (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Mar 27, 2023

Investors Seek Safer Options 

The financial chaos of the past two weeks has turned investors toward safer investments—such as money market funds—and away from banks. 

Key Details

  • Money market funds are high-liquidity investment funds with very low risk, as they are sponsored by an investment fund company and insured by the Federal Deposit Insurance Corporation (FDIC).
  • In the aftermath of the collapse of Silicon Valley Bank, investors have rotated their portfolios and shifted $286 billion in the past two weeks, according to a report from the Financial Times. 
  • iMoney.net data reported on Friday shows the majority of these investments went towards Goldman Sachs, JPMorgan Chase, and Fidelity, many into funds that hold U.S. government debt, which are considered safe investments.  
  • This marks the largest inflow for these investments since the start of the COVID-19 pandemic.

Why It’s Important 

The U.S. financial system suffered one of the worst banking crises in its history over the past two and a half weeks, with the collapse of Silicon Valley Bank, Signature Bank, Silvergate Bank, and the bailout of First Republic Bank. This failure forced thousands of investors to divert money away from unstable banks or risky investments that might risk access to their funds in the aftermath of another precipitious collapse. 

As we previously reported, nearly one in six Americans has moved money out of their bank account in the past two weeks. A large percentage of Americans moved money from regional banks to larger banks, which are perceived as safer in light of the stress impacting the market. 

The flow of money into money market funds shows a similar pattern, reflecting consumer anxieties about the stability of investments in the aftermath of the chaos. Many of these funds went to short-term treasury bills and “reverse repo” overnight loans, Axios reports. “This suggests institutional deposits are leaving the U.S. banking system,” wrote Moody’s analysts. 

Notable Quote 

“We are seeing shifts into money market funds by every segment of investor. Given the volatility we are seeing in the market, every investor has to ask themselves: does my cash risk profile match [my overall risk profile], and am I sufficiently diversified among the choices?” Goldman Sachs CIO Ashish Shah tells the Financial Times. 

Home / News / Investors Seek Safer Options 
Share
FacebookTweetEmailLinkedIn

Related Stories

Wall Street Makes $100 Billion Bet on Weight Loss Pills

by PJ Howland Leaders Staff
Investing

Oct 25, 2023

Ozempic

Investor optimism around a potential blockbuster obesity drug by Structure Therapeutics led to soaring share prices across the weight-loss pharma sector.

Key Details

  • Structure Therapeutics' stock jumped 35% after reporting positive results from early clinical trials of a once-daily weight-loss pill.
  • The experimental drug helped participants lose about 5% of their body weight over one month without side effects, although there are concerns with Ozempic.
  • Analysts predict the global anti-obesity medication market could reach sales of $100 billion by 2030, up from $71 billion currently.
  • With promising growth prospects, investors are betting on companies developing new weight loss drugs like Structure, Eli Lilly, Novo Nordisk, and Pfizer.

Go deeper

FacebookTweetEmailLinkedIn

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn
Chevron Gas Deal
Markets

Oct 23, 2023

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com