When the Great Recession struck, it was the start of the most significant economic downturn since the Great Depression of the 1930s. A slumping housing market revealed vulnerabilities of huge numbers of mortgage-backed securities and derivatives. In the aftermath, unemployment soared to 10%. GDP dropped by more than 4%, and federal authorities unleashed a series of unprecedented fiscal and monetary policies aimed at stemming the bleeding. When the dust finally settled, legislators and regulators pushed through a series of reforms meant to prevent the repeat of such a calamity. Fast forward to 2023 and the global banking system may be facing its most significant crisis since 2008. Within a short span, a run on deposits at Silicon Valley Bank quickly led to the third-largest bank failure in U.S. history, with Switzerland's Credit Suisse later seeking government lifelines. A second US regional bank — Signature Bank — failed, and a third — First Republic Bank — was propped up. To some, these are signs of the kinds of broader risks the global economy stared down in 2008. A combination of factors, including an eroding of regulations, sharp interest rate rises, mismanagement at banks, coupled with the overarching uncertainty of volatile crypto landscape, have raised new questions about the scale of turmoil that could confront markets. This cocktail of risks, some argue, has added such dangers to banking systems that it is no longer safer than it was in 2008. Others disagree. As bad this recent crisis appears to be, they say, regulatory reforms and liquidity requirements have made significant strides since the days of 2008. The system also effectively contained the contagion, something that required far greater government intervention in 2008. In that context, we debate the following question: Is the Banking System Safer Than It Was in 2008?

Arguing YES: Jason Furman, Former Chairman, Council of Economic Advisers

Arguing NO: Gillian Tett , Editor-at-Large, Financial Times (U.S.)

Emmy award-winning journalist John Donvan moderates

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