> Without a run on the bank none of this would have happened. A bank run is an almost inevitable consequence of a loss of confidence in a bank. The loss of co

> Without a run on the bank none of this would have happened. A bank run is an almost inevitable consequence of a loss of confidence in a bank. The loss of confidence was caused by their $1.8B loss on securities sales and plan to go to the market for $2B in funding. The next day shares plummeted, and people began to remove their money (including those advised by VCs)[1] Given the fact that only $250K of funds is FDIC guaranteed, in the face of a balance sheet crisis at the bank the withdrawal of funds was entirely rational. Arguably not doing it would have been irresponsible. Even if there hadn't been a bank run it's pretty easy to see cases where the bank would have "temporarily restricted the amount of money an entity can withdraw in a day" or something. That potential restriction on liquidity is something any responsible business owner would want to avoid. [1] https://abcnews.go.com/Business/timeline-silicon-valley-bank-collapse/story?id=97846565 https://abcnews.go.com/Business/timeline-silicon-valley-bank...