Andrew Denney Briefly Covers the Recent Bank Collapses

Open up a history book covering the 20th century, and you’ll likely find some mentions of runs on banks. During the Great Depression, collapsing banks were common, and many people lost their savings. Yet many consumers and even some economists and business leaders have long assumed that bank collapses were a relic of history. However, recent events prove that to be untrue, and finance expert Andrew Denney of Springfield, MO, explains what happened.

“The finance system today is much more stable and secure than the finance system of the early 20th century,” says Denney. “That said, it is important to remember that the banking system is not perfect or invulnerable. There are always risks.”

Silicon Valley Bank (SVB) was considered a premier bank for a long time and was especially well-known for working with startups and tech companies. Most people assumed that the bank was on solid footing, and until recent weeks, few suspected that the bank could collapse. Then on March 9th, seemingly within a blink of an eye, the bank was overwhelmed by withdrawal requests, and the government had to step in.

SVB wasn’t the first bank to collapse that week. That honor would go to Silvergate, a popular bank among crypto-investors and companies that announced that it was winding down operations. Further, after Silicon Valley Bank closed shop, Signature Bank in New York also shut down.

“The speed in which SVB and other banks shut down is somewhat alarming but also to be expected,” says Andrew Denney. “When these events happen, they can happen quickly, and with bank runs, in particular, once momentum builds, it’s difficult if not impossible to stop.”

Explaining Why SVB Collapsed So Quickly

Most banks today operate based on fractional reserve banking, which means they keep only a fraction of their depositions on hand to cover withdrawals. The rest of the money is invested in producing profits. A bank might lend out money in the form of mortgages or could pick up bonds that generate interest, for example.

“Fractional reserve banking has helped fuel our economy and is a vital component of our financial system,” explains Denney. “That said, it does leave banks vulnerable to bank runs. If everyone tries to withdraw their money at once, the bank won’t be able to cover the deposits and could collapse.”

A bank run refers to a situation in which everyone rushes to pull all of their money out at once. Bank runs can be psychological, creating a herd effect. Some people get nervous and start to withdraw money, which makes others nervous, and start withdrawing money. Suddenly, there’s a feedback loop pushing the bank toward collapse.

“You’d have to pour through the data to see if the collapse was inevitable with SVB and other banks too,” notes Andrew Denney. “But without the psychological factors and the resulting bank run, it’s unlikely that the bank would have collapsed so quickly.”

Andrew Scott Joins Jamie Foxx, Cameron Diaz, Kyle Chandler and Glenn Close in New Film ‘Back in Action’ for Netflix


  • Cast: Andrew Scott (Catherine Called Birdie, Fleabag), Jamie Demetriou (Cruella, Fleabag), McKenna Roberts (Skyscraper, Euphoria) and Rylan Jackson (Dungeons and Dragons), join the previously announced Jamie Foxx, Cameron Diaz, Kyle Chandler and Glenn Close in the Netflix film Back in Action.

  • Director: Seth Gordon(Horrible Bosses)

  • Writers: Seth Gordon and Brendan OBrien(Neighbors)

  • Producers: Jenno Topping, Peter Chernin and Sharla Sumpter Bridgett (Ford v Ferrari, Hidden Figures, Luther) for Chernin Entertainment; Beau Bauman (Central Intelligence) for Good One Productions; Seth Gordon for Exhibit A

  • Executive Producers:Jamie Foxx, Datari Turner, Brendan OBrien, Tim Lewis

  • The storyline for the action comedy film is being kept under wraps.

Andrew Keegan & Sonalii Castillo to Star in Social Justice Thriller “High Tide”

 Andrew Keegan (10 Things I Hate About You) and Sonalii Castillo (CW’s Outpost) have signed on to star in “High Tide”, a social justice thriller from director Natalie Bible’.

The film, penned by Bible’ and Brieanna Steele, follows a small-town waitress, Samantha “Sam” Merrick (Sonalii Castillo) who endures a brutal hate crime that leaves her badly injured and her younger sister dead. The film takes viewers on a twisty ride through Sam’s psychological trauma and pursuit for revenge, all while moving through a world that continues to limp along to the tune of systemic racism, inequity and persecution.

Keegan will play Detective Logan Bradford, a tenacious detective with a traumatic past, who sets forth on his own quest to help solve the Merrick case and alter a system that is broken.

NB Creative Studio is financing the film, with Bible’ and Steele also producing. The film is currently in production in Idyllwild, California and will be released late 2022.

NB Creative Studio

Brieanna Steele





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