Silicon Valley Bank’s (SIVB) stunning collapse has brought a new element to the conversation about what role management, regulators, and investors may have played in the bank’s ultimate failure — the role of social media.
A modern wrinkle in what was in many ways a classic bank failure spurred by a run on the bank, and a management team Federal Reserve Chair Jerome Powell said last week “failed badly” in the years leading up to the firm’s demise.
“SVB’s failure is a textbook case of mismanagement,” Michael Barr, the Federal Reserve’s vice chair for supervision, said in testimony delivered Tuesday. “The bank had a concentrated business model, serving the technology and venture capital sector.”
Source : Regulators cite social media for SVB’s rapid collapse, calling it a “complete game changer”