The Silicon Valley Bank Run: Regulatory and Media Failure

The most important thing to know about the recent banking problems in the United States is that they are not at all like the problems we saw in 2008-09. The crisis in the banking system during the Great Recession was a result of the fact that hundreds of banks across the country, including several of the largest, were insolvent. The current situation, with some banks facing runs from uninsured depositors, is not at all comparable. Media reporting, which has frequently made this comparison, has played a major role in exacerbating the recent crisis.