The Ubiquitous Coverage Of A Rare Crime
The Gist
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The Fed's Concern About Three Banks Failing
It really depends on how much they have done to in advance contain the fallout of those bank failures. Part of what made the failures of signature and SGB so much more disastrous from a regulatory perspective than the failure of Silvergate was that they had to invoke this incredibly exceptional systemic risk exception. So it's not about whether banks fail or not it's whether they fail in a way where that failure can be contained and you can follow those default rules. It's not just bureaucratically onerous it requires them the burden on them to say well what was it that made this situation so special?
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