What's a bank run? The 10 moves that led to SVB's demise | CNN Business

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Silicon Valley Bank's astonishing fall began when its customers rushed to draw down their accounts all at once — a destabilizing event known as a bank run.

Silicon Valley Bank’s astonishing fall Friday began when its customers rushed to draw down their accounts all at once — a destabilizing event known as a bank run. The bank provided financing for almost half of US venture-backed technology and health care companies.

It was the largest failure of a US bank since Washington Mutual in 2008, during the Great Recession. Although the bank’s fall unfolded over a rapid 48 hours, the story begins years ago with moves made by the Fed and investment decisions by the bank. Here’s what led to the demise of a Top 20 US commercial bank:

 

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😳 Really 👏👏👏

No, their collapse started when they hired a former Lehman Bros failure

What bank can stand a run where all depositors want their money?

Thanks Joe!!!

Someone at CNN either flunked or never took finance 101. The problems at SVB started 2-3 years ago when they began taking short term deposit funds and buying long term bonds. Everyone who knew that Biden would crash the economy was cashing in bonds.

It was known along time ago. CNN has Google right?... why the bullshit talk?

Who deregulated the banks? The guy who is running for President who failed to topple your government on January 6.

Seriously, you think their problems STARTED with the bank run? Let’s look at inadequate oversight, no stress testing and a portfolio that ignored the obvious economic direction the country was headed. They deserved what they got, except their leadership got out first.

So customers are not allowed to withdraw their own money?

Victim blaming!

JoeBiden signed EO 14018 on Feb 24, 2021 reversing: EOs 13772 and 13979 signed by realDonaldTrump. JoeBiden TheDemocrats are blaming their failure on regulations Biden already reversed thru executive action. TheDemocrats: denial and failure

It began way before that event

Duh, CNN always slow on the uptake!!!

Yea, blame the citizens and not the irresponsible executives that tanked the stock causing the rush 🤡 cnn

Inside job.They got there money a day sold there stock

Regardless what happened, ppl money should be there. The bank shouldn't be allowed to invest depositors money. And on top of it all charging ppl to have an account and the money isn't there 🥴

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