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For instance, Silicon Valley Bank lost $42 billion in a single day, a stark contrast to the $16.7 billion withdrawn from Washington Mutual during a nine-day period a decade ago. The ease of digital banking means that large-scale bank runs can happen in hours rather than days, prompting some experts to advocate for a re-evaluation of banking safety nets.
Market Reactions and Financial Indicators
The stock markets reflect growing concerns—bank stocks tend to decline swiftly as liquidity pressures mount. The collapse of Silicon Valley Bank was swift, resulting in a 60% drop in its stock before failure, while First Republic Bank’s dramatic 62% fall today suggests that market participants foresee further trouble ahead.