BATON ROUGE, La. — Due to the recent public anxiety caused by the Silicon Valley Bank (SVB) collapse in California last week, State Treasurer John M. Schroder released the following statement regarding the state's funding security:
“The money belonging to Louisiana taxpayers is safe. Treasury has no exposure to the banks that have been in the news this week. We monitor our bank accounts daily, keeping only enough cash to cover our daily transactions. We are a very conservative steward of the State's fiscal assets.
Louisiana’s primary bank is JP Morgan Chase, which has over $3.3 trillion in assets, and over $302 billion in capital. The bank conducts supervisory stress testing to ensure it is sufficiently capitalized to absorb losses during adverse conditions. Its fortress balance sheet principles are designed so that the firm can continue to serve clients and customers during uncertain times.
I’ve been getting lots of questions from people who are nervous. I want to reassure everyone that our state’s finances are not susceptible to negative fallout from Silicon Valley Bank’s shutdown.”
The majority of Louisiana's cash is invested in very short-term, liquid investments made up of Treasuries and Agencies, Schroder added.
On Friday, March 10, 2023, the Federal Deposit Insurance Corporation (FDIC) seized Silicon Valley Bank in the second-largest bank collapse in U.S. history.
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