2024-03-08 07:30:00 ET
Summary
- Bank shareholders and customers quickly twigged that in the age of social media and online banking, runs can happen in minutes.
- One lesson was that regulators taxed with keeping banks safe had, in SVB and Signature’s case, dropped the ball.
- Twelve months on, investors are still worried about banks.
- What’s troubling is that even as banks weather new challenges in their loan books, many of the earlier flaws in the bank ecosystem remain.
By Breakingviews
Death came for Silicon Valley Bank the way it almost always does for doomed banks: by depositors fearful of losing their money rushing for the door. But that mortal moment, which unfolded a year ago this week, was the culmination of a process that started long before. The killer - a disjointed system that is supposed to oversee, save or wind up U.S. banks but in practice struggles to do any of the three - is still at large....
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A Year On, SVB's Killer Is Still At Large