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https://www.wsj.com/articles/it-is-time-to-admit-it-bank-regulation-doesnt-quite-work-9617d913

It Is Time to Admit It: Bank Regulation Doesn’t Quite Work

Though stricter capital rules are touted as the solution to U.S. banks’ vulnerabilities, Credit Suisse has shown that big buffers don’t guarantee stability

By Jon Sindreu
The Federal Deposit Insurance Corporation is doing what it was designed to do when banks like Silicon Valley and Signature Banks go under: cover insured deposits. Here’s how the FDIC works and why it was created. Photo illustration: Madeline Marshall

For U.S. officials, what happened to Silicon Valley Bank seems to have an easy solution: Merge regional lenders together and regulate them as strictly as megabanks. The kink in the plan is that Credit Suisse also failed spectacularly.

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Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.