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Investors and savers are worried after runs on deposits caused the failures of Silicon Valley Bank of Santa Clara, Calif., on March 10 and Signature Bank of New York on March 12. But what many people may not realize is just how common it is for a large portion of a bank’s deposits not to be covered by insurance.
A breakdown of assets for SVB Financial Group SIVB — Silicon Valley Bank’s holding company — by Odeon Capital analyst Dick Bove indicates that most of the failed banks’ depositors would have been covered by the banks’…
