Banks in Scotland's free banking era used to have a capital cushion of around 1/3 of their balance sheet.
Not saying that this kind of capital cushion is viable in today's regulatory environment. Just to give an example of existing real world banks that were set up for that kind of bank run.
In any case, I agree that scarcely any bank today would be set up for that kind of run. That still doesn't absolve SVB. They put themselves in a position where it's rational for their depositors to run.
Banks in Scotland's free banking era used to have a capital cushion of around 1/3 of their balance sheet.
Not saying that this kind of capital cushion is viable in today's regulatory environment. Just to give an example of existing real world banks that were set up for that kind of bank run.
In any case, I agree that scarcely any bank today would be set up for that kind of run. That still doesn't absolve SVB. They put themselves in a position where it's rational for their depositors to run.