Analysis-Social media-driven bank runs burden regulators with a bigger problem

FILE PHOTO: FDIC representatives Luis Mayorga and Igor Fayermark speak with customers outside of the Silicon Valley Bank headquarters in Santa Clara, California, U.S. March 13, 2023. REUTERS/Brittany Hosea-Small/File Photo

WASHINGTON (Reuters) - The speed at which depositors fled Silicon Valley Bank this month - withdrawing $42 billion in 24 hours - has left authorities confronting a new risk: the social media-driven bank run.

Gone are the days when lines of people outside banks served as the defining image of a lender on the brink. In today's turbocharged digital age, customers can withdraw cash through a few taps on their phone.