Impressive detail of Twitter in bankruptcy that shook the world
Anthony Cookson of the University of Colorado Boulder, Corbin Fox of James Madison University, Javier Gil-Bazo of Pompeu Fabra University, Juan Felipe Imbet of Paris Dauphine University, and Christoph Schiller of Arizona State University, “Escape from a Bank (Bank Run He published an article titled “Social Media as a Catalyst”.
“Social media fueled the escape from the SVB, and its effects were widely felt in the US banking industry,” the academic paper in question states. It was said.
“ACCELERATE THE ESCAPE”
In the article, which used a large amount of data from Twitter, it was claimed that social networks strengthen risk factors for bank failure.
In the article, which claimed that there was a high level of Twitter action on bank stock losses during the bank run process, it was noted that this situation was stronger for banks with the bank run risk factor.
ALSO AFFECTED TO CHANGE
In the article, it was claimed that posts containing negative emotions during the runaway period instantly turned into stock losses.
BANKRUPTCY OF THE SVB
California-based SVB announced on March 8 that it would raise more than $2 billion in capital after closing its $21 billion bond position at a loss of approximately $1.8 billion.
SVB’s share price had lost more than 60 percent after word on the market said the bank was stuck on liquidity. Deposits of $42 billion were reported to have been withdrawn from the SVB in just one day due to panic.
ONE OF THE LARGEST BANKING BANKS
The rapid collapse of the SVB forced banking regulators to take action, and the US Federal Deposit Insurance Corporation (FDIC) announced on March 10 that it had appointed a trustee for the SVB.
The panic triggered by venture capitalists trying to overcome the liquidity crisis had dragged the 16th largest bank in the US into one of the biggest bankruptcies in the country’s history in 48 hours. The bank’s failure was one of the biggest since the 2008 global financial crisis. (BRITISH AUTOMOBILE CLUB)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
