We didn't see it in our due diligence list.
Here is a summary of that list:
It is my understanding that there was never a run on a solvent bank; runs were the consequences of bank failures, not the causes of them. It should also be pointed out that most bank failures were clearly caused by so-called 'unit banking', where the government prohibited banks from having multiple branches in diverse areas. Less-regulated banks (such as those in Canada and Scotland) suffered fewer failures, and had no issues with runs.
(+ Postscript for original post: I typoed BIS as BLS because I'm used to the latter, oops)
For the past decade we've found out -- annually -- that internationally regulated financial provider X/Y/Z is banking narco terrorists, or sheltering funds for politicians, or being the final off-ramp for ransomware.
> Now let's do the exact same thing in the crypto-verse, except with even dodgier loans [...]
Guess it depends on your definition of "dodgier". I grew up with unregulated pay-day-loans being in every strip mall in Ohio.
> [...] rampant fraud and bank robberies.
The IC3 report <https://www.ic3.gov/Media/PDF/AnnualReport/2020_IC3ElderFrau...> on state-side fraud implies the per-capita rate of Americans scammed in 'normal banking' far exceeds the rate of Americans scammed by crypto.
A scandal, to be sure! You have, indeed, identified the mote of dust in your brothers' eye. But while it's certainly bigger in absolute terms, you should try it as a percentage of transaction volume. The only reason that crypto doesn't blow it totally out of the water on crime volume is that crypto remains obscure, only marginally relevant to the real world.
It's like telling me that there's more crime total in the US than there is in Haiti. It's technically true — and yet, Haiti is much dangerous.
Now let's do the exact same thing in the crypto-verse, except with even dodgier loans, even more pathetic capital buffers, and, by the way, rampant fraud and bank robberies. It is only by the grace of obscurity and irrelevance to anything that matters that crypto-finance as a whole doesn't suffer widespread derision and fear a hundred times worse than the banking crisis.