A trio of bank runs at Silicon Valley Bank (SVB), Signature and Silvergate Bank probably has you sitting up and paying attention, possibly biting your nails. Is this the beginning of another financial unraveling? How could a tech bank as important and big as SVB go broke?
President Joe Biden and U.S. Treasurer Janet Yellen were both quick to reassure us—Don’t worry!— because worry is only one step removed from panic and more bank runs by worried depositors.
Taifa Smith Butler, the new president of Demos, the nation’s best-known multiracial economic justice organization, commented in a recent interview with Ms. about an apparent double standard when it comes to banks like SVB, Signature and Silvergate: “The government has not asked questions of the banks for this latest bailout—protecting the priorities of banks and shareholders. But for the rest of us, not so much.”
She added: “It’s important for Demos to be on the ground and keep our eyes on financial institutions. We have to have public accountability.”