Stay Tuned with Preet cover image

In Brief: When Should Banks Be Saved? (with Sheila Bair)

Stay Tuned with Preet

00:00

Is This a Safe Resilient Banking System?

I think the banking system is basically sound. I think regional banks and mid-sides banks are basically sound. But you create this systemic risk exception as a rationale to bail out very rich uninsured depositors. I think you set off alarm bills for people and I don't think that's right. If it had been clear to them with absolute certainty that it would be a 10% haircut, it might have been different. There were a lot of analysts over the weekend disseminating analysis saying the haircut would probably be around 10%. They're actually private sector participants setting up markets to go ahead and buy the uninsured claims in order to monetize the uninsured claims. Well, you know, just look

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app