6 things you NEED to know about the Silicon Valley Bank collapse

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Silicon Valley Bank's collapse is sparking traumatic memories of the 2008 financial crash. Should we be worried SVB is signaling a similar economic catastrophe, or is everyone overreacting to the media's hype? Glenn told his listeners to be "healthily terrified." This event is sure to have ripple effects throughout the economy, but the more you are informed about it, the more you can prepare. Here are 6 things you need to know about Silicon Valley Bank's crash—explained in simple words.

1. The short answer to what happened: SVB didn't have enough money to pay its depositors.

Remember the scene from It's a Wonderful Life when all of the residents make a run on George Bailey's bank demanding their money? Fortunately for them, their money was in the altruistic hands of George Bailey, who used his honeymoon savings to give the depositors the money they demanded.

Silicon Valley Bank's depositors weren't so lucky.

In short, the depositors made a run on Silicon Valley Bank, demanding the withdrawal of their money. But SVB simply didn't have the liquid money available to give their depositors, causing regulators to shut down the bank shortly afterward.

2. It all started with COVID...

Why didn't SVB have enough money for its depositors? To explain this, we have to go back to the pandemic era.

The pandemic saw a rapid decrease in spending and a massive increase in bank deposits. Due to the uncertainty of the future and lockdowns limiting ways to spend money on recreational activities, like restaurants, bars, and other outlets, many Americans stocked up money in their accounts. In fact, SVB's deposits doubled in 2021 alone, bringing in more money than they could lend out to their clients.

To make a return on their available cash, SVB wanted to invest it, as many banks do. Since they had reached their lending limit, they decided to invest it in U.S. Treasury Securities, which are the government's means of funding itself without using taxation (in a nutshell). These are considered "ultra-safe" investments because they are backed by the "full faith and credit of the federal government."

Unlike other forms of investments, investing in Treasuries means the government will do everything within its legal power to pay back the money used to fund itself. In other words, it is typically very safe... so what happened?

3. Then came the magic cocktail—record-high inflation and rising interest rates...

Interest rates ruined the typically "ultra-safe" investment. Due to 40-year record-high inflation, the Fed lifted rates eight times by a total of 4.25 percentage points in 2022, raising interest rates from 0.25 percent to 4.375 percent. This means the value of U.S. Treasuries investments plummeted rapidly. SVB reported that it lost $1.8 billion due to the decreased value of its Treasuries investments after a year of rising interest rates.

This raises the following question: why didn't SVB just weather the storm and wait for interest rates to decrease? There are two issues with this. The first is that, with so many of their assets held up in Treasuries investments, SVB still wouldn't have enough liquid assets to give their depositors during the bank run.

The second issue is that Treasuries investments have a ten-year limit. In 2021 during the Trump administration, interest rates were at an all-time low of 0.125 percent.

The record-fast increase of interest rates in 2022 caused very little chance for rates to go back down to their historic 2021 lows within ten years for banks to make their money back on their investments.

To avoid this, SVB planned to sell their investments at a loss and re-purchase Treasuries investments at the decreased value, giving them an extra ten years to bet on decreased interest rates in the future.

But people caught on to SVB's plan and didn't want to ride with the risk.

4. Account holders withdrew their money... FAST.

As aforementioned, SVP lost $1.8 billion when it sold its depleted Treasuries investments. While they were betting on being able to re-purchase the devalued securities, hoping that they would go up in value in the future with lowered interest rates, investors were worried about the risk.

Once they made the announcement of their $1.8 billion loss, their stocks began to drop, and venture capitalists warned the companies they invest in to pull out of SVB. This had a snowball effect, leading to a "bank run" of depositors demanding to withdraw their money from their SVB accounts.

This led to the perfect storm: SVB's investment losses coupled with the influx of withdrawals were so immense that regulators had to step in and shut the bank down to protect depositors. The government currently "running" SVB, for all practical purposes, is the Federal Deposit Insurance Corporation (FDIC). The FDIC closed SVB on Friday and reopened the bank on Monday, March 13th as the Deposit Insurance Bank of Santa Clara.

5. Some people may lose their money. 

Banks insure accounts with $250,000 or less with FDIC insurance. That means, in cases of bank failure, exactly like this one, the FDIC covers all accounts less than $250,000. The FDIC said SVB customers who had less than $250,000 in their accounts will have access to all of their money when the bank reopens. Since it reopened this week, they should have access to their funds.

However, many of SVB's depositors had more than $250,000 in their accounts—it is Silicon Valley after all. Therefore, their accounts were not covered by FDIC insurance. Will they get their money back? There is a chance that they will not.

It is unclear how much SVB currently has to cover uninsured deposits. It is likely not enough. The FDIC has issued a "Receiver's Certificate" to the uninsured account holders with the amount in their account that is not covered by FDIC insurance.

The FDIC said it will pay some of the uninsured deposits by next week by liquidating any additional assets held by SVB. However, if the liquidated assets are not enough, many of SVB's uninsured account holders could lose their money for good.

6. Is this 2008 all over again?

SVB's collapse was the largest bank failure since 2008, when Washington Mutual failed with $307 billion in assets. Its failure, along with the collapse of the Lehman Brother's investment bank, triggered the worst financial crisis since the Great Depression. Are we in danger of repeating 2008?

Some argue that we are not in danger of another economic catastrophe, simply because SVB holds less than 1 percent of the nation's assets. However, as Glenn warns, there is a danger of banks repeating the same mistakes as SVP.

SVP wasn't the only bank to use its surplus deposits to invest in U.S. Treasuries, which means that other banks are wrestling with the depleted value of their securities investments due to rising interest rates.

Bank of America, for example, lost $109 billion in their securities investments due to rising interest rates, the most among its peers—and Bank of America is no small fish in the ocean of assets.

Other major banks recorded other massive losses in their securities investments due to rising interest rates. JP Morgan Chase lost $36 billion, Wells Fargo lost $41 billion, Citigroup lost $25 billion, and Goldman Sachs lost $1 billion. If the little banks collapse, will they get the same effort and attention from the federal government as the "big guys?"

The critic may argue that these are still small values given the incredibly large amount of assets held in banks nationwide. However, this is missing the point. Major banks have majorly invested in securities since the pandemic-era skyrocketing rate of deposits. Now those investments are depleted in value.

They can either sell those investments at a loss, or they can wait and hope that they will recover over time. However, if those investments are no longer liquid, what happens when their depositors come knocking? Will they have enough liquid assets to cover a massive bank run? These are the lingering questions that our banks need to address.

As Glenn says, this will impact you—it is only a matter of time. What will you do to prepare?

Glenn: Why Memorial Day is not just another holiday

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They wore the uniform so you could live free. This holiday, ask yourself if you're living in a way that honors that sacrifice — or cheapens it.

Your son has been a Marine for what feels like an eternity. Only those who have watched their children deploy into war zones can truly understand why time seems to freeze in worry. What begins as concern turns to panic, then helplessness. You live suspended in a silent winter, where days blur and dread becomes your constant companion.

Then, in an instant, it happens. What you don’t know yet is that your child — your most precious gift — fell in combat 60 seconds ago.

This is a day for sacred remembrance, for honoring those who laid down their lives.

While you go about your day, unaware, military protocol kicks into motion. Notification must happen within eight hours. Officers are dispatched. A chaplain joins them. A medic may accompany them in case the grief is too much to bear.

Three figures arrive at your door. One asks your name. Then, by protocol, they ask to enter your home. You already know what’s coming. You sit down. He looks you in the eye and says:

The commandant of the Marine Corps has entrusted me to express his deep regret that your son John was killed in action on Friday, March 28. The commandant and the United States Marine Corps extend their deepest sympathy to you and your family in your loss.

This moment has played out thousands of times across American soil. In 2003 alone — just two years after 9/11 — 312 families endured it. In 2007, 847 American service members died in combat. In 2008, 352. In 2009, 346. The list goes on. And with every name, a family became a Gold Star family.

Honor the fallen

For most Americans, Memorial Day means backyard barbecues, family gatherings, maybe a trip to the lake or a sweet Airbnb. There’s nothing wrong with enjoying these things. But we must never forget why we can.

Ask any veteran who lived when others did not, and you’ll understand: Memorial Day is not just another holiday. It is a solemn day set apart for reverence.

So this weekend, reach out to a Gold Star family. Acknowledge their pain. Ask about their son or daughter. Let them know they’re not alone.

This is a day for sacred remembrance, for honoring those who laid down their lives — not for accolades but for love of country and the preservation of liberty. “Greater love hath no man than this, that a man lay down his life for his friends” (John 15:13).

They died for the Constitution, for our shared American ideals, and the worst thing we could do now would be to betray those ideals in a spirit of rage or division.

We cannot dishonor their sacrifice by abandoning the very principles they died to protect — equal justice, the rule of law, the enduring promise of liberty.

This Memorial Day, let us remember the fallen. Let us honor their families. Let us recommit ourselves to the cause they gave everything for: the American way of life.

They are the best of us.


This article originally appeared on TheBlaze.com.

Trump exposes Left’s habeas corpus hijack in border crisis

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Democrats accused the president of declaring war on civil rights. In reality, he’s defending habeas corpus while they drown it in delays and legal loopholes.

Tuesday’s congressional testimony from Homeland Security Secretary Kristi Noem turned heads for all the wrong reasons. Pressed to define “habeas corpus,” she stumbled. And while I respect Noem, this moment revealed just how dangerously misunderstood one of our most vital legal protections has become — especially as it’s weaponized in the immigration debate.

Habeas corpus is not a loophole. It’s a shield. It’s the constitutional protection that prevents a government from detaining a person — any person — without first justifying the detention before a neutral judge. It doesn’t guarantee freedom. It demands due process. Prove it or release them.

Bureaucratic inertia, activist judges, and political cowardice have turned due process into a slow-motion invasion. And the left knows it.

And yet, this doctrine — so essential to our liberty — is now being twisted by the political left into something it was never meant to be: a free pass for illegal immigration.

The left wants to frame this as a matter of compassion and rights. Leftists ask: “What about habeas corpus for migrants?” The implication is clear: They see any attempt to enforce immigration law as an attack on civil liberties.

But that’s a lie. Habeas corpus is not an excuse for indefinite presence. It doesn’t guarantee that every person who crosses the border gets to stay. It simply requires that we follow a process — a just process.

And that’s exactly what President Donald Trump has proposed.

Habeas corpus, rightly understood

Habeas corpus is the front door to the courtroom. It simply requires the government to justify why someone is being held or detained. It’s not about citizenship. It’s about human dignity.

America’s founders knew this — and that’s why they extended the right to persons, not just citizens. Habeas corpus isn’t a pass to stay in America forever — it’s a demand for legal clarity: “Why are you holding me?” That’s it.

If the government has a lawful reason — such as illegal entry — then deportation is a legitimate outcome. And yet, the left treats any enforcement of immigration law as a betrayal of American ideals.

The danger today isn’t that habeas corpus is being ignored; it’s that it’s being hijacked. The system is being overwhelmed with bad-faith cases, endless appeals, and delays that stretch for years. Right now, the immigration courts are buried under 3.3 million pending cases. The average wait time to have your case heard is four years. In some places, people are being scheduled for court dates as far out in 2032. Where is the justice in that?

This is not compassion. This is national sabotage.

Weaponizing due process

The left uses this legal bottleneck as a weapon, not a shield. Democrats invoke due process as if it requires the government to play a never-ending shell game with public safety. But that’s not what due process means. Due process means the state must play by the rules. It means a judge hears a case. It means the law is applied justly and equally. It does not mean an open border by procedural default.

So no, Trump is not proposing the end of habeas corpus. He’s calling out a broken system and saying, out loud, what millions of Americans already know: If we don’t fix this, we don’t have a country.

This crisis wasn’t an accident — it was engineered. It’s a Cloward-Piven playbook, designed to overwhelm the system. Bureaucratic inertia, activist judges, and political cowardice have turned due process into a slow-motion invasion. And the left knows it.

Abandon the Constitution?

Remember, the Constitution is not a suicide pact. But how do we balance the Constitution and our national survival without descending into authoritarianism? Abandon the Constitution? No. Burn the house down to get rid of the rats? Absolutely not. The Constitution itself gives us the tools to take on this crisis head on.

The federal government has clear authority over immigration. Illegal presence in the United States is not a protected right. Congress has the power to deny entry, enforce expedited removals, and reject bogus asylum claims. Much of this is already authorized by law — it’s simply not being used.

President Trump’s idea is simple: Use the tools we already have. Declare the southern border a national security emergency. Establish temporary military tribunals for triage. Process asylum claims swiftly outside the clogged court system. Restore “Remain in Mexico” so that the border is no longer a remote court room. Appoint more immigration judges, assign them to high-volume areas, and hold streamlined hearings that still respect due process.

That’s not authoritarian. That’s leadership.

The path forward

Trump is not trying to destroy habeas corpus. He’s trying to save it from being twisted into a self-destructive parody of itself. Leftists have turned due process into delay, justice into gridlock, and they’re dragging the entire country into their chaos.

It’s time to draw the line. Protect habeas corpus. Use it lawfully. Use it wisely. And yes — use it to restore order at the border. Because if we lose that firewall, we lose the republic.

This article originally appeared on TheBlaze.com.

Betrayal of trust: Medicare insurers face lawsuit over kickback scheme

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Editor's note: This article is sponsored by Chapter.

The U.S. government has filed a major lawsuit under the False Claims Act, targeting some of the biggest names in health insurance—Aetna, Elevance Health (formerly Anthem), and Humana—along with top insurance brokers eHealth, GoHealth, and SelectQuote. The allegation? From 2016 to at least 2021, these companies funneled hundreds of millions of dollars in illegal kickbacks to brokers to steer seniors into their Medicare Advantage plans.

If the allegations are true, it means many Americans may have been steered into Medicare Advantage plans that weren’t necessarily the best fit for their needs—not because the plans were better, but because brokers were incentivized by illegal kickbacks.

The Kickback Conspiracy

Navigating Medicare Advantage’s maze of plan options is daunting, so beneficiaries rely on brokers like eHealth, GoHealth, and SelectQuote, who claim to be unbiased guides. But from 2016 to 2021, insurers Aetna, Humana, and Elevance Health allegedly paid brokers millions in kickbacks to favor their plans, regardless of quality. Disguised as “co-op” or “marketing” deals, these payments were tied to enrollment targets. Internal emails revealed executives knew this violated the Anti-Kickback Statute, with one eHealth leader joking that the Centers for Medicare & Medicaid Services (CMS) would miss a $15 million Humana deal for minimal enrollments. Brokers used call routing to prioritize high-paying insurers, betraying beneficiaries’ trust.

Discrimination Against the Vulnerable

The scheme wasn’t just about profits—it targeted vulnerable beneficiaries. Medicare Advantage must accept all eligible enrollees, including disabled people under 65. Yet Aetna and Humana allegedly pressured brokers to limit their enrollment, as these beneficiaries were deemed to be less profitable. Brokers complied, rejecting referrals and filtering calls to favor healthier enrollees, incentivized by bonuses. This violated federal anti-discrimination laws and CMS contracts, undermining the founding principles of Medicare by discriminating against the very people it was created to aid.

False Claims and the Pursuit of Justice

The schemes led to false claims to CMS, with insurers certifying enrollments as “valid” despite kickbacks and discrimination. The government paid billions, unaware of the fraud. Examples include Humana’s $12,477 for a 2016 enrollment and Aetna’s $79,047 for a 2020 case. On May 1, 2025, the U.S. filed suit, seeking treble damages and penalties under the False Claims Act. Aetna and others deny the allegations, per May 2025 reports, promising a fierce defense. The case, demanding a jury trial, seeks justice for beneficiaries and taxpayers.

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- Glenn Beck