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Financial security tested with two bank failures in one week

SANTA BARBARA, Calif. - Where your money is safely invested or in a savings account has become a worry for many Americans after two banks failed this week.

Silicon Valley Bank and Signature Bank customers have both been rescued by the federal government.

For Silicon Valley Bank, customer investments in long-term bonds sunk creating losses greater than the deposits.

For Central Coast residents, some have been asking their local banks about the situation and whether or not their money is safe or insured by the federal government up to $250.000.

At a Montecito Bank & Trust Anniversary Grants event in Santa Barbara Wednesday night CEO Janet  Garufis took time out to tell a first floor lobby full of guests and honorees about the situation there.
"It's been kind of a wild week in banking," said Garufis. 

 Montecito Bank & Trust is privately owned.

She said she makes sure "we keep this bank safe, sound and compliant.  We take excellent care of our customers and associates. We don't do any crazy stuff. We don't do Crypto."

It's been a top-of-mind conversation around the bank branches. "Our people have done an extraordinary job this week talking to our customers and helping them feel secure and comfortable," said Garufis.

Across the country banking customers have been told to make sure their bank is covered by the Federal Deposit Insurance Corporation (FDIC).

There is a $250,000 limit is per depositor, per account on accounts such as checking, savings, money market, certificates of deposits and several other investment accounts.

The overall gathering for the bank's anniversary grants was part of the commitment to the communities where MB & T has branches in Ventura and Santa Barbara Counties.

The recipients were:

  • Angels Foster Care of Santa Barbara
  • Animal Shelter Assistance Program (ASAP)
  • California Lutheran University – Center for Non-Profit Leadership
  • Lompoc Theatre Project
  • Page Youth Center
  •  Royals Theatre Production Fund, Inc.
  • Santa Barbara International Film Festival
  • Solvang Senior Center
  • The Horse Project
  • Youth Empowered Sports Club

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John Palminteri

John Palminteri is senior reporter for KEYT News Channel 3-12. To learn more about John, click here.


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