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Source: OpenAI’s DALL-E

“Unimaginable”. This is the word Greg Brockman, OpenAI’s co-founder & President, selected to complete the sentence: “A world powered by AI in 2050 will be…” during his interview at SXSW 2023. Unimaginable is also that word that perfectly captures the events unfolding in real time as just hours earlier, regulators had shut down Silicon Valley Bank, marking the biggest U.S. bank failure since the 2008 financial crisis. Just like greed was the motive behind the digital-empowered WallStreetBets army that drove meme stocks to the moon two years ago, fear was the motive that drove depositors to withdraw a stunning $42 billion from Silicon Valley Bank the prior day, resulting in the first digital bank run. The unimaginable continued as regulators shut down crypto-focused Signature Bank on Sunday, citing systemic risk. Although the government came to the rescue of depositors, announcing it will backstop all deposits using FDIC’s deposit insurance fund to make depositors at both banks whole, It’s [Not] A Wonderful Life for banks or investors as the fear of contagion continues.

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