In 2018, US lawmakers loosened banking regulations on the spurious grounds that smaller banks do not pose systemic risks to the stability of the financial system. Unfortunately, everyone will have to relearn the hard-won lessons of past banking crises.
WASHINGTON, DC – The collapse of Silicon Valley Bank in northern California and Signature Bank in New York are the largest bank busts since 2008. Regional and mid-sized bank stocks have tanked, and depositors and businesses are worried about who might be next. US President Joe Biden’s administration and the Federal Reserve have duly stepped in to prevent more panic-driven bank runs, and to shore up the broader financial system where needed.