[mertd]

That isn't the case. To continue the concert analogy, the concert hall had more than enough doors to let everyone out if people left in their usual walking pace, but some doors were locked and the security was paying someone to unlock them. People took this as a sign that they should sprint to the gates.

[PKop]

The bank has failed and those with deposits in excess of 250k have not been guaranteed and cannot withdraw now what are you talking about? The bank failed!! lol. If one had withdrawn fast enough, they have their money; those who waited lost.

The analogy is, it doesn't matter, those who didn't leave quickly got stampeded and died. Anyone who had huge amounts of cash in excess of the FDIC limit sitting there is an idiot. Doubly so if they heard of the "run" and did nothing.

As long as Fed has rates way way above 0% checking accounts, the gravity is going to pull deposits out of banks and into US Treasuries.

I've been withdrawing personal and business account cash for months and rolling in short term treasuries, many others are too as commercial bank deposits have been declining at record pace this year. Now this bank run. Anyone over the FDIC limit + those who begin to notice the interest rate differential (so..safety plus excess returns) are going to be incentivized to pull money out. This might not be the last bank failure... even if technically there is not danger on paper, human psychology will probably dictate that more will withdraw.

The rational choice is clear in this situation: anyone with excess deposits should move quickly. Who cares if nothing else breaks? Better to do it and not need to, than to need to but not do it.

[parasubvert]

You completely misunderstand the situation. The bank failed because of the bank run. It’s unlikely any depositors are going to lose their money because the bank was not insolvent. They’re going to get 50-60% of their deposits by Monday or Tuesday.

[PKop]

*OBVIOUSLY* the bank failed because of the bank run. What the hell does that have to do with the pertinent question of: was it rational to withdraw? Those that panicked first won. Those that didn't lost.

[parasubvert]

Won? Lost? Are you 12 years old?

A bank run is a self fulfilling prophecy driven by irrational fear. It is, by definition, irrational. It also doesn’t happen much any more because most banks aren’t susceptible to them (ie. have 90%+ deposits uninsured).

[mertd]

Sorry but that's not correct. SVB is dead but solvent. People will eventually get their money back.

[PKop]

"Eventually"

You are just plain wrong that withdrawing was the wrong choice. What about those needing to make payroll or pay other expenses in the mean time? When will they get their money back? You have no idea lol

The bank failed. It has been closed. It was a bank failure. Here's the official source that calls it a "failed bank" [0]

[0] https://www.fdic.gov/resources/resolutions/bank-failures/fai...

[mertd]

Please calm down with the FUD. We both agree its dead. This doesn't mean its assets vanished. It will be liquidated and the proceeds will be returned to the creditors (deposit holders). The assets are sufficient to make the depositors whole.