The Role of Banks in an Economy

There is an argument to be made that perhaps SVD was overregulated on, especially on their loans side. Do you think there's any merit to the sense that overregulation can hurt the banking sector and by extension the economy just as much as underregulation? Right. I'm not sure the debate is really between underregulation and overregulation. There are clear reasons why we need banks to be regulated and probably strongly regulated. And so this has to do with this possibility of bank runs than the fact that you have to ensure deposits. Once you ensure deposits, you create all kinds of bad incentives and so you need tools to correct those bad incentives.