From Lehman to Silicon Valley Bank and Beyond: Why Are Mistakes repeated in the US banking system?

Helyette Geman

No 2313, Policy briefs on Economic Trends and Policies from Policy Center for the New South

Abstract: On Friday, March 10 -2023, the US and the world discovered that the Federal Deposit Insurance Corporation (FDIC) had seized the Silicon Valley Bank after SVB’s customers had withdrawn an extraordinary $42 billion from their deposits on March 16. This $4.2 billion an hour, or more than $1 million per second for ten straight hours, an unprecedented event made possible by the use of Apps by many startup founders to access their accounts and advise their friends to do the same -what the Chairman of the House of Financial Services Committee called ‘the first Twitter -fueled bank run’.

Date: 2023-03
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