iPhone & Twitter were babies when WAMU failed, making SVB the first social media bank run ever

The rapidity of the [SVB] crisis and social media has taught us that tech is obsoleting the current regulatory structure, which was built in the 1930s.

Kali Hays at Business Insider has collected a lot of now-deleted tweets from tech leaders that led to Silicon Valley Bank’s first-ever social media fueled bank run.

She notes how even tech folks realized their twitter panic was a mistake — and how even SVB deleted its twitter account.

It made me remember The Basis Point did a timeline comparing the rise of real-time media with the fall of finance during the 2008 crisis.

And the biggest bank failure before SVB was WAMU, which happened when the iPhone was only a year old.

Here’s that piece from the archives.

TIMELINE: The Rise of iPhone & Twitter And The Fall Of Finance & Mortgage Rates

And go read Kali’s piece which includes long-time regulator and tech-minded market structure leader Tom Vartanian commenting on how to look at outmoded regs.

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Reference:

– SVB is the first social media bank run in history. The crisis will change the banking industry forever.