Ben Carlson: Bank Runs, Now, and then

Bank Runs, Now & Then Posted March 12, 2023 by Ben Carlson Silicon Valley Bank, the 16th biggest bank in the country, was closed on Friday. It was the second-biggest bank failure in U.S. history. As recently as November 2021, the market cap of the company was more than $44 billion. That equity is now essentially worthless. There is a lot to this story but it really boils down to an old-fashioned bank run. A flood of withdrawals from depositors destroyed the bank. If everyone with a Planet Fitness membership showed up at the gym at the exact same time there would…