> “That was absolutely idiotic,” the employee, who works on the asset management side of Silicon Valley Bank, told CNN in an interview. “They were being very tr

> “That was absolutely idiotic,” the employee, who works on the asset management side of Silicon Valley Bank, told CNN in an interview. “They were being very transparent. It’s the exact opposite of what you’d normally see in a scandal. But their transparency and forthright-ness did them in.” This is pretty ironic. Not only people constantly complain at lack of transparency but when they actually get honesty and glimpse into workings of a large bank they panic and withdraw their money and do themselves in. The irony part is that any bank will fall if people take a peek and realise the bank does not have their money. As for banks, fractional reserve banking is a fraud that is made and tolerated in the name of economic progress. But other than suspending withdrawals there exists no way to safeguard a bank against bank runs. And it is not possible to prevent the bank from losing your money as long as the bank is free to invest your money into financial instruments -- there exist no financial instrument that are free from risk. There exist no way of combining financial instruments to hedge against risk completely. The only thing that you can do is to shovel your risk from place to place and make so it looks that you don't have any risk until it happens. And then you loose catastrophically.