05/1/23, The Indicator (09:45)
Link: https://www.npr.org/2023/05/01/1173175098/svb-now-first-republic-how-it-all-started
Instructors: Click here for link to Teaching Ideas for this episode
Summary: First Republic Bank has folded and the Fed has a new “unflinching” report on the regulatory and supervisory failures leading to the SVB failure. SVB’s own mismanagement, the 2018 relaxation to Dodd-Frank plus lax and lethargic supervision are to blame. Our student application exercise gets into some of the specifics here (CAMELS ratings anyone?) while also discussing broad trade-offs that regulators face.
audioecon 