Louisiana Treasurer Schroder Released Information to Assure Residents of the Security of State Funds After Recent Bank Collapse

Louisiana – Louisiana Treasurer Schroder has released information to assure residents of the security of state funds after the recent bank collapse.

To assuage any concerns Louisiana residents may have about the state’s finances in the aftermath of California’s bank collapse last week, Louisiana State Treasurer John M. Schroder issued the following statement:

“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.”

JP Morgan Chase is Louisiana’s primary bank, with over $3.3 trillion in assets and over $302 billion in capital. Supervisory stress testing is performed by the bank to ensure that it is adequately capitalized to withstand losses under unfavorable conditions. Its fortress balance sheet principles are intended to ensure that the firm can continue to serve clients and consumers even in difficult circumstances.

“I’ve been getting lots of questions from people who are nervous,” Schroder said. “I want to reassure everyone that our state’s finances are not susceptible to negative fallout from Silicon Valley Bank’s shutdown.”

He went on to say that Louisiana invests the vast majority of its money in relatively short-term, liquid investments such as Treasuries and Agencies.

The Federal Deposit Insurance Corporation (FDIC) closed Silicon Valley Bank (SVB) and seized its deposits on Friday, March 10, causing much of the recent public alarm.