Vanguard Announcement re Silicon Valley Bank And Signature Bank Brokered Cds

alan1 | Mar 14, 2023 | 880 posts since 2015

This message appeared on Vanguard's CD and bond trading platform.

"ALERT: If you own a Silicon Valley Bank or Signature Bank brokered Certificate of Deposit (CD), the FDIC insurance covers deposits and CDs at each insured bank, normally $250,000 per owner, per bank. Vanguard will partner with the FDIC on our clients behalf to ensure a prompt and orderly payout of funds. We anticipate this process to conclude in approximately two weeks."

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Rickny | Mar 14, 2023 | 1,298 posts since 2017

Wow 2 weeks. I remember when a bank I funds at was xlosed by the FDIC on a Friday and I received the check the next Wednesday.

alan1 | Mar 14, 2023 | 880 posts since 2015

Rickny -- I've had a similar experience, but that was for a non-brokered CD. The FDIC completely closed the bank on a Friday and, on Monday, mailed out checks to insured depositors. And the United States Postal Service did a splendid job in transmitting the check to me.

But it always takes longer with brokered CDs. The FDIC transmits funds to the brokerage. The brokerage then has to place those funds into the customers' accounts. From what I've read in the past about brokered CDs, it generally took 1-2 weeks for customers to receive their funds.

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