Crisis at Silicon Valley Bank

This chapter examines the dramatic collapse of Silicon Valley Bank due to a massive withdrawal crisis, where $42 billion was pulled out by depositors. It delves into the unique dynamics of the Silicon Valley community's panic and decision-making, which were influenced by game theory and loss of confidence in financial institutions. The discussion highlights the broader implications for regional banks and the urgent need for federal intervention to stabilize the banking system amidst the turmoil.