From: zerohedge

“Never Seen In Over 40 Years” – SVB Collapse Sparks Bank Runs As People Wait In Lines | ZeroHedge

Friday morning’s seizure of Silicon Valley Bank by the Federal Deposit Insurance Corporation (FDIC) underscores the banking sector’s vulnerability, exposing the Federal Reserve’s lack of foresight in combating inflation through aggressive interest rate hikes that have caused regional banks to crumble. As venture capitalists and others with inside knowledge panicked and withdrew a staggering $42 billion in deposits before SVB’s collapse, an old-fashioned bank run reminiscent of the one in the classic 1946 film has ensued, involving ordinary people.

Let’s go down memory lane and revisit the bank run scene from the movie.

https://www.youtube.com/embed/OTJCI1FNBfA

The velocity at which elite investors and depositors removed $42 billion from SVB on Thursday is truly impressive, causing the most significant US bank failure since the financial crisis just one day later. Unfortunately, small banking clients had insufficient time to withdraw their funds, leaving their unsecured deposits likely lost, and the FDIC only provides protection for deposits of up to $250,000.

This is what a digital era bank run looks like https://t.co/s7Ex17Dk84

— Ben Schreckinger (@SchreckReports) March 12, 2023

On Saturday, just like the bank run scene from , images and videos surfaced on social media of people lined up outside SVB branches and other SVB-exposed banks, trying to panic-withdraw as much money as they could.

Shades of 1930’s. This is my bank in Wellesley this morning. Boston Private Bank, recently acquired by Silicon Valley Bank. Ruh, roh. pic.twitter.com/MAD46ozShx

— Lawrence Lepard, “fix the money, fix the world” (@LawrenceLepard) March 10, 2023

Bankrun in the US #SVB pic.twitter.com/HbMmR2dLge

— marc friedrich (@marcfriedrich7) March 11, 2023

I’ve never seen a bank run in Brentwood Los Angeles in over 40 years — this is at first republic bank branch. People standing in rain pic.twitter.com/k31PqqpyO3

— pjb.eth (@Dr_PhillipB) March 11, 2023

On Sunday, Treasury Secretary Janet Yellen said banking regulators are working to resolve failed SVB with a focus on depositors but didn’t elaborate on details.

Yellen told CBS’s that despite SVB’s collapse, the US banking system remains safe, well-capitalized, and resilient. She said officials are “working to address this situation in a timely way.”

Meanwhile, as Jason Calacanis writes, this might be the beginning.

ON MONDAY 100,000 AMERICANS WILL BE LINED UP AT THEIR REGIONAL BANK DEMANDING THEIR MONEY — MOST WILL NOT GET IT THIS WENT FROM SILICON VALLEY INSIDERS ON THURSDAY TO THE MIDDLE CLASS ON SATURDAY — MAIN STREET FINDS OUT MONDAY

— @jason (@Jason) March 12, 2023

The question we posted yesterday to premium subs:

As fear spreads this weekend, even more people will likely be lining up in front of these regional banks on Monday morning.

… and Monday it is.

From a source I trust: @SVB_Financial depositors will get 50% on Mon/Tues and the balance based on realized value over the next 3-6 months. If this proves true, I expect there will be bank runs beginning Monday am at a large number of non-SIB banks. No company will take even a… https://t.co/2BoqtCDKJt