Say "bank run" and many people conjure black-and-white photos from the 1930s — throngs of angry depositors clamoring for their money. But the sudden collapse of Silicon Valley Bank and Signature Bank shows how in an age of instant communication and social media, a financial panic can go into hyperdrive, facilitated by the ability to make instantaneous bank transfers and withdrawals.
How fast did it happen? Consider that when Washington Mutual experienced a run as it collapsed in September 2008, depositors withdrew $16.7 billion over a 10-day period. By contrast, customers at Silicon Valley Bank tried to withdraw $42 billion — more than twice as much — in a single day, last Thursday.
