Bank runs used to be slow. The digital era sped them up
[ad_1]
A bank run conjures images of “It's a Wonderful Life,” with anxious customers crammed shoulder to shoulder, desperately pleading with a harried George Bailey to hand over their money.The failure of Silicon Valley Bank last week had the panic but few other similarities, instead taking place on Twitter, message boards, cell phones and bank websites.Tw What made the failure of Silicon Valley Bank unique compared to past failures of large banks was how quickly it collapsed. Last Wednesday afternoon, the $200 billion bank announced a plan to raise fresh capital; by Friday morning it was insolvent and under government control. Regulators, policymakers and bankers are looking at the role that digital messaging and social media may have played in the collapse, and whether banks are ente...