Battling bank failures: A feature - not a bug - of the system: Paul J. Davies

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Battling bank failures: A feature - not a bug - of the system: Paul J. Davies

In the wake of Silicon Valley Bank and Signature Bank’s failures a year ago, regulatory responses, such as the Federal Reserve’s proposed rule changes and the Recoup Act, aim to hold executives accountable for bank failures. However, historical banking bargains, shaped by political pressures, economic shifts, and technological advances, reveal a complex interplay. While calls for higher capital requirements echo, the challenge lies in depolitici…