Tyler Schipper, professor of economics and data analytics at the University of St. Thomas, recently spoke with WCCO Radio about the possible ripple effects of the SVB collapse and the implications this has for retail customers.
From the story:
“The bank was doing what banks do,” Schipper said. “They take your deposits and they invest them in things, or they give out loans, and what was happening is that they were already under a little bit of pressure because their depositors were coming to pull money out as they were having a hard time making it in Silicon Valley right now.”
Schipper said the run made by depositors definitely moved quicker because of the convenience of modern technology.
“From ‘There’s trouble there’ to the bank is being taken over by the FDIC was a matter of, like, a day and a half, it felt like. It happened very quickly,” he said.