Business Insider
- Silicon Valley Bank’s rapid implosion shows how bank runs can go at warp speed in the digital age.
- SVB’s customers tried to withdraw funds at a rate of nearly $500,000 a second Thursday.
- Bank-regulation rollbacks by President Donald Trump in 2018 have also been blamed for SVB’s demise.
If the spectacular collapse of Silicon Valley Bank has shown us one thing, it’s the speed at which a bank run can take place in the digital age.
Panicked SVB clients tried to withdraw $42 billion from the bank Thursday — equivalent to nearly $500,000 a second over a 24-hour period — and the bank simply couldn’t meet the demand.
For context, the biggest bank run of the 2007-2008 financial crash saw $16.7 billion withdrawn from Washington Mutual, a savings and loan bank, over the course of 10 days.
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