The demise of Silicon Valley Bank and the financial dominos yet to fall dominated business news this week, and the facts of the event need no repetition from me. But if you’re NYU Professor and entrepreneur Scott Galloway it’s not too soon to begin extracting some lessons and making some judgments regarding diagnosis, prognosis…and who the heroes and villains of the moment are.
Students of business and economic history know that we’ve been here before. (As MarkTwain said, history doesn’t repeat itself, but it rhymes). While the safeguards of the banking system embedded in law and regulation may prevent or mitigate the severity of earlier bank runs, we clearly have not immunized ourselves from the possibility of same.
Dr. Galloway identifies the essential element of coping with bank runs….and it’s not financial. His recent post, Venture Catastrophists emphasizes the role that leaders have not only to their companies, but to our society as well in preventing and responding to such crises.
