Anna Vocino, the founder and chief executive of Eat Happy Kitchen in Santa Ynez, Calif., said she experienced Silicon Valley Bank’s collapse this way: On the morning March 10, she’d logged in to the bank system there to set up bill payments that were due that Monday. Then, her husband told her the media was reporting that the bank was in trouble.
The stress of SVB’s collapse — and the collapse of Signature Bank, and the teetering and propping-up of First Republic Bank FRC and Credit Suisse Group AG CSGN — has rippled through markets and shocked smaller businesses on Main Street. Only three companies in FactSet’s financials sector overall — Charles Schwab Corp. SCHW , KeyCorp KEY and Comerica Inc. CMA — saw their earnings-per-share estimates fall by more than 1% over that time, according to FactSet.
Elsewhere, analysts have said smaller banks could shoulder more of the financial fallout from any of their larger, distressed counterparts. UBS analysts on Thursday noted that nearly half of the nation’s lending came from outside the nation’s 25 biggest banks. And they said “it is in this smaller group where deposit growth and costs could be a bigger challenge.”
“I was watching CNBC,” she said. “And the whole focus is on tech bros, and Silicon Valley crashing. And I’m like: Hello? There are all these other businesses with this company.”
'Must be nice to be on Wall Street. Meanwhile us plebs are just scrambling to make ends meet.'
It's interesting to see how Wall Street and businesses on the ground are responding differently to bank earnings this week. BankEarnings
Wow, so much effort just to end up right back where they started!