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https://www.wsj.com/articles/you-dont-need-a-banking-crisis-for-a-financial-meltdown-regulation-credit-suisse-svb-venture-capital-hedge-funds-nonbanks-54485d5c

You Don’t Need a Banking Crisis for a Financial Meltdown

Post-2008 regulations may save us from a bank panic. The danger is every other financial institution.

By Joseph C. Sternberg

April 6, 2023 1:10 pm ET

Journal Editorial Report: Biden officials are sending damaging mixed signals on policy. Images: Getty Images/Pool via AP Composite: Mark Kelly

Once and for all: The problem isn’t “the banks.”

The most visible recent manifestations of global financial distress have been in banks—Silicon Valley Bank, Signature and First Republic in the U.S., Credit Suisse in Europe. This is giving rise to a comforting myth (or cynical lie, if you’re so inclined) that the damage from the current monetary tightening cycle is containable and now contained, a product of management and supervisory lapses at a handful of institutions.