Crypto Panic at Silvergate Spawns a New Breed of Bank Run
- Depositors from single volatile sector fled amid market tumult
- That unusual danger is seen drawing new regulatory attention
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When US banks fell like dominoes during the Great Depression, the cause was often a classic run: Depositors withdrew cash en masse amid fears that lenders were amassing huge losses on bad loans and investments.
The cryptocurrency era just put a new twist on that — with the depositors running into trouble first.