There's a shocking similarity between the downfall of FTX and the implosion of Silicon Valley Bank, Fundstrat says
panic among the bank's customers spread like wildfire, especially on social media platforms like Twitter and among venture capital group chats and e-mail chains.
Case in point, Silicon Valley Bank received $42 billion of withdrawal requests on Thursday, or about a quarter of its entire deposit base. The intensity and swiftness of the panic, enough to spark an old-fashioned run on the bank, is unprecedented. "The speed of failure of SIVB is stunning and enabled in a digital world — in fact, its collapse mirrors the implosion of FTX digital. Both happened within days," Lee said."And no doubt, in this digital age, information moves quickly," Lee said.
That's a precarious dynamic considering that trust in America's financial system is a core tenet of economic stability., to ensure SVB customers that uninsured FDIC deposits would be made whole and a run on Silicon Valley Bank wouldn't spread to other regional banks. So far, it seems to be helping, though there are a handful of Silicon Valley Bank peers that are no doubt experiencing instability on Monday. Shares of
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