Social Media Is Rewriting the Banking Playbook

Photo caption: Traders work on the floor of the New York Stock Exchange during morning trading on March 13, 2023, in New York City. […] Photo credit: Michael M. Santiago / Getty Images. Article by Alex Lipton and Alex Pentland. Scientific American – August 2, 2023.

In the past year social media panics caused “flash crashes” that bankrupted Silicon Valley Bank (SVB) and made giant banks such as Deutsche Bank wobble. SVB’s officers had unwisely purchased long-term U.S. Treasury bonds, which lost value in 2023 when interest rates increased dramatically. The bank failed when […]

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