The Lessons Learned From Bear Stearns and Lehman Brothers

Are we repeating the foibles of Bear Stearns and Lehman Brothers or have we learned our lessons over 15 years? I think we've learned some lessons. There's no doubt about it that the higher capital levels, the stress tests have done a lot to strengthen the underlying banking system but you have to have significant questions about how that was implemented by supervisors. Silicon Valley Bank had over $15 billion of losses in their health to maturity portfolio which doesn't get run through the P&L statement, doesn't get scored against the capital. We know how to fix bank runs, deposit insurance fixes bank runs and we've had that.