SVB, now First Republic: How it all started

05/1/23, The Indicator (09:45)


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.

Posted May 4, 2023 by ishanitewari in monetary policy

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