What's up everyone, this is Alex. Quick note about this episode before you hop into it.

My co-host Jesse and I recorded an emergency episode about the Silicon Valley Bank situation

on Friday, March 10th. When we recorded the episode, SVB had collapsed,

it's stock plummeted, there was a run on the bank by its depositors and the FDIC had taken over.

There wasn't yet clarity on what would happen to customers deposits above the $250,000 limit

that was insured by the FDIC and there wasn't yet a buyer of SVB.

Since recording the episode, other important pieces of the puzzle have occurred.

First, the Biden administration announced that all customers of SVB will have full access

to their deposits as of Monday, March 13th. Second, Signature Bank, a New York-based bank with $110

billion in assets and $89 billion in deposits was closed. The FDIC was appointed receiver

of the bank and all depositors were protected in the same way as Silicon Valley Bank.

Now, while the facts around the story have changed, I still think you will find this episode

of the crazy ones to be really instructive. Jesse is an expert in how banks work and how

this situation unfolded, so you will gain a deep understanding of the banking system,

what causes runs on banks, and what causes the 16th largest bank in the country to collapse.

Now, onto the episode.

All of my founder and post-exit founder groups blowing up the only thing that was being talked

about was Silicon Valley Bank. Were you seeing the same thing, Jesse?

Yeah, it's been a crazy 24-36 hours.

This is one of those stories where we'd be remiss not to talk about what's happening with Silicon

Valley Bank, how banks even work, how did things get to this point, what a run-on-to-bank means,

and how founders should be thinking about navigating not just this situation, but

...