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by pclmulqdq 1204 days ago
What's bizarre is that this is a particularly big bank to be going under. Most of the ones that die are tiny because banks have a real economy of scale here.

Lehman and Washington Mutual were truly exceptional cases in the 2008 crisis, and SVB may be right there with them in a few weeks.

3 comments

2008 also had IndyMac and Wachovia[1] and a whole lot of regional banks, which were not small either.

[1] which technically didn't fail but had its retail banking operations forcibly absorbed by Citigroup in an overnight shotgun wedding officiated by the FDIC, but hey who's counting

You can also add Bear Stearns to that list. Another "rescue" merger of a large-cap bank.
WaMu failing was so strange.
most banks that fail are tiny because most banks are tiny