Gold IRA

The Impact of SVB Financial Group on Investor Cash Management

The SVB Financial Group 401(k) and Employee Stock Ownership plan had 19% of its $1.3 billion in assets in company stock as of Dec. 31, 2021, or about $245 million.[0] This amount is not unusual for bank employee retirement plans, as many other companies such as Zions Bancorporation have similar allocations.[1] Unfortunately, the company stock is now essentially worthless after the Federal Deposit Insurance Corp. took over the high-profile venture capital and startup lender on March 10.[0]

Over the past year, due to the SVB crisis, wealthy investors have been increasingly motivated to move their funds from bank accounts to Treasurys and money markets.[2] This is due to the rapid Federal Reserve hikes, which have made Treasurys and money markets now offer a 4% or 5% risk-free return — often double the yield on a savings or checking account.[2] Consequently, affluent investors and family offices have been transferring almost all of their cash reserves into investments that provide higher yields and are usually not reflected on the banks' balance sheets.[2]

0. “SVB, other bank 401(k) plans taking big hit on company stock portfolios” Pensions & Investments, 13 Mar. 2023,

1. “Employer Stock In Your 401(k) Account Can Leverage Your Risks” Forbes, 14 Mar. 2023,

2. “Where wealthy investors are putting their cash after SVB collapse” CNBC, 16 Mar. 2023,

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