Understanding bank runs, failures and delayed paychecks

Compass Coffee baristas kept the caffeine flowing this week, but their paychecks froze after the DC startup’s bank – Silicon Valley Bank – failed on March 10. A spokesman from the local coffee house said all employees got their wages by March 13 after the federal government stepped in to backstop all the money deposited at the failed bank. And while this move by the government gave many a sigh of relief, questions remain about what this bank failure means for the economy. This week, WTOP financial contributor Barry Glassman, President of Glassman Wealth Services, explains what happened to Silicon Valley Bank, why Compass Coffee employees were impacted and how we should react.
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