Why bank runs happen: 'It's like a mass delusion that becomes a reality'—causing crises like the SVB collapse
Publishing timestamp: 2023-03-17 15:16:29
Summary
Credit Suisse's shares rose after announcing it would borrow up to $54 billion from Swiss National Bank, following a sell-off earlier in the week due to signs of financial weakness. The article discusses the recent bank run at SVB, which was caused by a social contagion and resulted in the second-largest bank failure in US history. The article notes that most Americans don't need to worry about their deposits as they are insured by FDIC, but startup companies like SVB's clients may have cash holdings well in excess of the insurable amount.
Sentiment: NEGATIVE
Tickers: SIVB, SBNY, CSG.N-CH,
Keywords: svb financial group, patrick mchenry, signature bank, credit suisse group ag, jerome powell, janet yellen,
Source: https://www.cnbc.com/2023/03/17/financial-psychology-and-bank-runs.html