Social media frenzy fuels bank busting panic in the US


Federal authorities took over Silicon Valley Bank (SVB) last week less than 48 hours after it first announced bad news. — Reuters

NEW YORK: Fearful Twitter posts and anxious WhatsApp exchanges coupled with online banking ease are seen as helping power an Internet-age run on a pair of now-collapsed American lending institutions.

Both Silicon Valley Bank and Signature Bank were hit with massive withdrawals by customers fearful of losing their money, but the speed was dizzying in an age when rumours spread like wildfire on social media and apps make moving funds with the click of a simple button.

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