22 March 2023 - bank failures

Jay Scott : Daily Whale : archive : 2023 : 22 March 2023

Why are distant banks getting in trouble after one moderate-size bank failed? Isn't it because 2007 is too recent, so that customers panic at the suspicion of the shadow of a whisper of risk? Maybe the right reform is to wait for the rumors to blow over.

clue:

The sudden rise in interest rates put stress only on banks that were already weak due to mismanagement.

Not all reforms were put through, but still the financial sector is much more secure than in 2009. And regulators have gone above and beyond, arguably doing more than they should to protect confidence.

give me a clue so sweet and true