The Northern Rock Bank Run Was Not a Bank Run

Silvergate customers started withdrawing their money because they were worried about silvergates solvency and this is what we think of as a bank run. In modern US banking there's deposit insurance to reassure retail depositors that the banks are solvent. The problem was the crypto customers whose own customers no longer trusted them. Contagion from the crypto crash caused the problems at silvergate. Rising interest rates caused losses in their bond portfolio weakening their capital position. Silvergate collapsed amid a criminal investigation by the Justice Department's Fraud Division along with scrutiny from politicians and regulators. Their problems deepened as they liquidated assets at a loss and shut down their flagship payments network, which they called the heart of