Swiss bank cash shortage announcement should not be reason to panic, says expert
FOX 2 (WJBK) - Wednesday was a tough day on Wall Street after a Swiss bank is the latest to announce it is short on cash. But amid new fears, there are some financial experts who say most Americans shouldn't worry.
"When you reached out Brandon, I let you had a half-hour window to take this call because after that my next call is to a client of mine to talk about this exact thing," said Matt Trujillo.
On a busy day for financial planners, FOX 2 asked Trujillo, a partner and senior planner at Center for Financial Planning, about the fallout from Credit Suisse Bank’s stock hit, which follows the recent failures of Silicon Valley Bank and Signature Bank.
Trujillo says this is the latest misstep for the Swiss bank, which had a falling out with one of its top clients.
"There’s been some major challenges facing them for, in my opinion, ever since we came out of the financial crisis in 2008," he said.
FOX 2: "Should I be worried?"
"I would say to the extent that your deposits exceed $250,000, I would be a little concerned," Trujillo said.
That includes customers of banks like Comerica and Huntington.
But most people don’t have a quarter of a million dollars sitting in one account.
The survey of consumer finances says the average household savings account is just north of $40,000.
Still, Trujillo says when big financial news hits, he spends part of his day making sure his clients don’t overreact..
"This should not be a financial crisis unless we the people, make it one," he said.
FOX 2: "How much does panic play a factor?"
"Panic is a big part of it," he said. "That is the biggest risk that we’re facing right now."
Trujillo advises anyone, with a significant amount of money at any one bank, to make sure deposits don’t surpass $250,000 dollars - and diversify to other institutions.