Silicon Valley Bank contagion fears are ‘overblown’, says lawyer

Concerns surrounding the banking sector escalate as Silicon Valley Bank's collapse sparked fears of contagion. Berenzweig Leonard Managing Partner Seth Berenzweig told Yahoo Finance that while risks in the system do exist, many things are "overblown". "There have been fundamental misconceptions about how the FDIC and its insurance program works," he says. "When we hear about references to bailouts or national takeovers, that's not what's happening at all," he explains. As Credit Suisse (CS) gets a $54 billion lifeline from the Swiss National Bank, reports from the Wall Street Journal are also emerging that large banks including JPMorgan (JPM) and Morgan Stanley (MS) are considering a deal with First Republic Bank (FRC). While Berenzweig says there may be "a few canaries left in the coal mine," he believes we are safe right now. "It sure would be nice to stop seeing these black swans fall out of the sky," he adds. Key Video Moments: 00:00:05 - Things are overblown 00:00:37 - This is not a bailout 00:01:07 - People's deposits are safe Don't Miss: Valley of Hype: The culture that built Elizabeth Holmes WATCH HERE: Subscribe to Yahoo Finance: About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more. To learn more about Yahoo Finance Plus please visit: Connect with Yahoo Finance: Get the latest news: Find Yahoo Finance on Facebook: Follow Yahoo Finance on Twitter: Follow Yahoo Finance on Instagram: Follow Yahoo Finance Premium on Twitter: #svb #siliconvalleybank #yahoofinance
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