The second-biggest bank failure in U.S. history took less than 48 hours.
Since the bank is FDIC-insured, depositors were guaranteed protection of up to $250,000 in funds for different types of accounts held in the event of a collapse. However, many depositors in Silicon Valley Bank held accounts that far exceeded $250,000, raising the stakes for those who failed to remove their funds before a potential bank failure.
"Virtually all of the depositors were from the same community and a community that was very online," Allen told ABC News. "If you've got something like Silicon Valley Bank, where the vast majority of depositors are in the tech industry and are very connected and all speaking to one another, those are the circumstances in which a panic can really flourish very, very quickly.
While digital banking allows for quick and easy withdrawals, the availability of such a service likely contributed little or not at all to the bank run, since such technology has existed for many years without significant issue, the experts said. MORE: Silicon Valley Bank collapse: Treasury, Fed and FDIC announce steps to ensure deposits will be paid in full
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