The digital era · 2000–today
2023
The Silicon Valley Bank run
Depositors pull $42 billion in a day, and the bank fails.
Silicon Valley Bank held long-term bonds that lost value as rates rose, and most of its deposits were above the insured limit. In March 2023, depositors tried to withdraw about $42 billion in a single day, and regulators closed the bank.
💡 Why it made sense then
Phones and social media let a run spread in hours instead of days.
Ideas it gave us
- 🏦 Bank run
A bank run happens when many depositors withdraw their money at once because they fear the bank will fail, which can make it fail even if it was sound.
Practise with $10,000 in play money
Free. No real money involved.