I'm feeling disagreeable so here goes:
I think the narrative that "Silicon Valley broke its own bank and it's another example of how tech is broken" is complete hokum, and exonerates the actual villains here.
Bank runs happen all the time.
They are what happen when you have insufficient bank regulation.
The bipartisan bill of 2018 that let SVB dodge good banking rules is the actual problem here.
This is not a tech issue, it's a banking one.
@mimsical It's definitely both.
With a side dose of Silicon Valley companies failing to use known tech to handle payroll across multiple bank accounts to preserve FDIC protections, & doing insane shit like keeping half a billion $ in one bank (Roku).
@mimsical Yeah, small depositors can't stress test your bank. But multi-million $ payroll companies can be responsible for knowing FDIC deposit limits and managing risk. You know these same people would be making analogous arguments if we were dealing with subprime mortgage borrowers.
But I agree bad 'conservative' GOP governance is the *largest* problem. Cows are out of the barn since 2018. How are you going to get around the filibuster & House to fix that now?
Christopher Mims
Erin Conroy