Various pension funds that invested in Silicon Valley Bank have lost millions in the aftermath of the collapse of the California-based bank.
The California Public Employees Retirement Fund had invested $67 million into Silicon Valley Bank and roughly $11 million into Signature Bank, which also failed, per Newsweek.
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A spokesperson for the state’s pension fund, which has more than 1.5 million members, told the outlet the investments in the two banks made up “a small percentage of our overall portfolio.”
Other pension funds with investments included the Employee Retirement System of Rhode Island, which helps retired state and municipal workers. The Rhode Island pension fund had just over $2.6 million invested in both of the failed banks and two other at-risk banks: First Republic and Silvergate Capital.
However, the funds invested in the failed banks only included a small portion of the state’s total pension fund, which is estimated at $10.3 billion.
Pension funds from different countries also had some investments in the banks, including Swedish pension fund Alecta and South Korea’s National Pension Service. The Korean pension fund had tens of millions of dollars invested, and the Swedish pension fund had hundreds of millions of dollars invested in the failed banks.
The California-based Silicon Valley Bank was shut down by state regulators on Friday, while the New York-based Signature Bank was closed on Sunday.
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The collapse of Silicon Valley Bank, along with other institutions such as Signature Bank, caused shares of several regional banks to tank Monday morning as the fallout from the collapse continues. First Republic Bank, which is also based in California, opened down 73% Monday morning, and other financial institutions saw shares take a dive.
President Joe Biden addressed the recent banking failures Monday by attempting to reassure the country that the “banking system is safe.”
