What to know from today – SVB fallout, regional bank contagion

The Yahoo Finance Live team discusses the top things you need to know from the market day on Monday, centered around the collapse of Silicon Valley Bank.

Video Transcript

SEANA SMITH: It's closing time here at Yahoo Finance. Let's get you up to speed on the story of the day, which is the fallout from the collapse of Silicon Valley Bank and Signature Bank. Now, the Fed announcing this afternoon that vice chair Michael Barr is leading a review of how Silicon Valley Bank was supervised and regulated. Regulators saying they will also ensure that all customer deposits will be protected. We talked to a startup CEO who had his funds at SVB last week. Here's what he had to say about the fallout.

- This is huge because either you have tens of thousands of employees in this ecosystem that will not get paid if wires don't start clearing by today. You also have to remember, it's not just us companies without the money. It's also a lot of our payroll providers who are banking at Silicon Valley Bank.

DAVE BRIGGS: One of the big sectors taking a hit was regional banks. Several regional bank stocks were halted for volatility as regulators rushed to contain any contagion from SVB's collapse. First Republic Bank taking the biggest hit, ending the day down more than 60%. Western Alliance closing down almost 50%. Zion and PacWest both ending the day down over 20%.

SEANA SMITH: Significant losses there, but at the end of the day, when you take a look at the major averages, it looks like the stock market had a pretty muted reaction. We did see some volatility here, but didn't close too far from the flatline. The S&P and the Dow closing in the red. The NASDAQ, though, holding onto gains, up just about a half of a percent, as some economists now are questioning if the Fed will even raise rates at their meeting later this month.