Silicon Valley Bank (SVB) suddenly collapsed just one week after making it to Forbes’ America’s Best Banks list, turning one of those best banks into the second-largest bank failure in US history. This immediately led to a storm in the global financial system. What was so striking is just how classic a bank run it was.
The 2008 failures of Bear Stearns or Lehman Brothers seemed at least to highlight new concepts such as sub-prime mortgages and private securitisation. And since the crisis of 2008 we have been constantly introduced to new risks in the non-banking sector. So who would have thought that an old-school bank run was on the cards?
