Hey John, it's really good to see you today we are talking about kind of some breaking news, what's happening with Silicon Valley Bank and the markets. We are recording this on a Monday afternoon. We want everybody to know that there are still a lot of moving parts but you made it a priority to be communicative with clients. So we wanted to get on top of this. So let's just get in the Fed is moving to stem the US banking crisis following the rapid collapse of Silicon Valley Bank. So let's start with what is most important for your clients, what do they need to know?

Well, the difference in the banks that our clients are, have their money with versus SVP is substantial, right? And the banks that our clients have their money in our systemically important banks, right, the too big to fail banks, banks with solid financial records and stable records and outlooks going forward. So, you know, in comparison the two I believe our clients are, are at very low risk of what happened to you know, the, the investors with SVP. So that's, that's important and systemically, the actual systematically important banks, you know, the big name brand banks are actually very well capitalized right now, too. So that's another type of positive ID that we haven't really heard too much about. Right.

So John, let's just break that down a little bit more because these non systemically important banks like Silicon Valley, their investments were heavily weighted in bonds and not was probably not a good investment decision. Yeah, I think what, 14 months ago, we moved our clients out of bonds, right.

It really their problem was twofold. Number one they had a lot of in in Silicon Valley valleys.

And since they had a lot of commercial deposits, but they didn't have any other way to make money. They weren't. They didn't have a lot of loans or mortgages or auto loans, like a lot of these banks do. So that was that was the first problem. The second problem is they went ahead and made a big bet on bonds in a zero interest rate environment with with the Fed spiking interest rates. So as one analyst I mean, very callously put it they were negligent mismatch of the investments, and they didn't hedge against that interest rate risk, and it blew up on them. So you know, that's a and we kind of look at again, a comparison SPP had 50% of its investments in bonds, whereas some of the systemically important banks 25% So that was what really caused it and then as soon as of course, having 50% of your holdings in long term bonds, they took a huge loss, which they announced last week. A lot of these corporate depositors, obviously, you just because your business is on the line, took the money out, then the rumors flew of a bank run off, and that's where we got to the SVP. Right. Okay. Well, thank you for that explanation. Again, just how this comes back to the clients or to the average investor. I don't know if this is average, but the FDIC only insurance deposits and banks up to $250,000. So if you have more than $250,000 in the bank, what should you be doing? be diverse, diverse if you're if you're a lover of banks, be diverse. Don't right, now's not the time to go for those small regional banks paying a little bit higher in interest rates. Whether it's an insurance company or or a bank, right? Brookstone vets these banks, they want to know that these banks are financially stable much the same way that if I ever do an insurance vehicle, we want the most financially superior companies. So have multiple banks, if you're going to carry over that 250,000 Because as I said earlier, the SVP beatdown that these companies are taking a lot of them were way beyond the $250,000 threshold. So that's a big lesson for people understand, right? So again, as we work to educate everybody who's watching this video, how is this different from the 2008 banking and financial crisis? Yeah, well, again, they there are some similar there's similarities. There was a lot of mismanagement. But there was less regulations being this is prior to the Dodd Frank and then you had the banks of the 2008 financial crisis and highly volatile derivatives. So now you know the banks see this systemically important banks are, as I said, they're, they're much more capitalized. And they're, they have a lot more regulations after the Dodd Frank and they have the ability to make money in a rising rate. interest rate environment with those loans and mortgage rates, that SVP and these other banks can now the word of warning is, are we done with this? Many analysts say no, this is just the tip of the iceberg in terms of the smaller regional banks, but those same analysts feel comfortable with the systemically important banks, as does Brookstone, Capital Management. So what I do believe this is going to do it's going to erode confidence in the banking system yet again.

And this is going to cause market volatility.

So, you know, for our clients, we're doing some more proactive things this week. As a matter of fact, after we record, I'll be on a call with my analyst to discuss some changes that we're looking at. Right? Okay. Well done talking this through with you was incredibly valuable. Of course, this it's very understandable if people feel anxious, though, after listening to these headlines, if they have any questions for you, what's the best way to reach you? Oh, you can just call at the office 858-935-6210 or visit our website www.go securus.com. And before we go, Erin, I've got to say thank you to all the people that production, the editing and the legal who review these videos because we're going to try to get this video out and turn it around in one day. So we want to get this information out. So thank you to all those people that worked hard for that. You do have the best team around town that's for sure. Thank you very much for your time today.

Thank you Erin.