Bank runs used to be slow. The digital era sped them up

By KEN SWEET and STAN CHOE
The Associated Press

NEW YORK (AP) — What made the failure of Silicon Valley Bank unique compared to past failures of large banks was how quickly it collapsed. Last Wednesday afternoon, the $200 billion bank announced a plan to raise fresh capital; by Friday morning it was insolvent and under government control. Regulators, policymakers and bankers are looking at the role that digital messaging and social media may have played in the collapse, and whether banks are entering an age when the psychological behavior behind a bank run _ mass fear from depositors of losing their savings _ may be amplified and go viral quicker than bank officers and regulators can successfully respond.