Social Media Bank In History Is The Silicon Valley Bank
Without social media, there is a high possibility that the run on Silicon Valley Bank would not have occurred.
Bank runs have occurred in the past, but this failure was a brand-new tech-driven occurrence that astounded regulators, the banking industry, and the majority of other experts. Social media, particularly Twitter, rapidly contributed to an increase in anxiety in the computing community.
On Thursday, there were about 200,000 tweets about “SVB,” and several tech company owners and CEOs posted about taking money out of the bank. The very individuals SVB backed for so many years, tech titans, simply couldn’t resist.
“OK, I’m getting advice about what to do at SVB from hundreds of entrepreneurs. Founder Howard Lerman wrote on Thursday, as SVB was attempting to collect additional funding, “It’s an all-out bank run.
Depositors attempted to remove $42 billion from SVB by Friday. Regulators closed the bank, and the FDIC took it over.
Tom Vartanian, general counsel of the Federal Home Loan Bank Board during the Savings and Loan crisis of the late 1980s and author of “200 Years of American Financial Panics,” asserts that no bank has ever fallen so quickly.
The speed of the crisis and the rise of social media, he said, have shown us how outdated the 1930s-era regulation system is. In a world that is technologically advanced, the entire structure needs to be viewed differently.
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Speculations About Silicon Valley Bank
This week’s abrupt failure of Silicon Valley Bank has caused pandemonium in the cryptocurrency market. Even after a former supervisor warned of impending “investor carnage” in bitcoin and other cryptocurrency prices.
Regulators and Federal Reserve officials are frantically trying to stop the stunning collapse of the tech startup-focused bank from spiraling into a full-blown financial crisis.
Amid the chaos, Tesla tycoon Elon Musk said he’s “open to the idea” of Twitter acquiring Silicon Valley Bank, and Changpeng “CZ” Zhao, the CEO of Binance, the biggest bitcoin and cryptocurrency exchange in the world, suggested that it may be time to purchase a bank.
In reaction to a proposal from Min-Liang Tan, the CEO of gaming computer firm Razor, electric car company Tesla of Elon Musk still holds about $220 million in bitcoin, said he’s “open” to Twitter purchasing Silicon Valley Bank.
When Silicon Valley Bank failed, the bitcoin and cryptocurrency sector was already experiencing its financial catastrophe. Following the shocking failure of the largest cryptocurrency exchange FTX last year, client withdrawals caused the crypto-friendly bank Silvergate to crash earlier this week.