Bradley Tusk, a US tech investor, has expressed concerns to CNN about the lack of preparedness of financial regulators for bank runs in the age of social media. Tusk, who invested early in Uber and Coinbase, believes that social media companies should collaborate with regulators if they notice sudden surges in online posts and mentions of banks.
He stated that this is an obvious solution to the problem. "By detecting the issue sooner, they can respond more quickly, which could help prevent a bank run," he explained to Julia Chatterley. Speaking more broadly about the impact of SVB's collapse, Tusk revealed that his venture capital business had funds stored at SVB, but emphasized the importance of saving the tech-focused bank for the greater economic good.
"If Silicon Valley Bank had gone under, half of the startups in this country might have gone out of business," he warned. "This would have been a major blow to the innovation economy." Tusk also mentioned that his firm had not invested in any startups since the SVB crisis began, as they were focused on resolving the issue.
