banking crisis

But to be honest, I had nothing critical to say and I've learned that when you have nothing to say, it's better not to say it at all.

But the banking crisis has built up over the course of this year, and it's created a conundrum because on the one hand, we hear talk of a banking crisis, but on the other hand, the market seems to be pretty unfazed about the whole thing.

In fact, this crisis had its beginnings in Silicon Valley Bank's collapse in March of 2023.

And what shocked people was not just the magnitude of the collapse, but how quickly it happened.

It was only in the aftermath of the Civil War that in the US you started to see bank regulation and each round of regulation was triggered by a crisis.

The banking rules that were passed in 1863 required chartering of banks for the first time and introduced the notion of safety reserves, regulatory capital.

The 2007 banking crisis made legendary by the fact that J.P. Morgan saved the U.S. in many ways triggered the creation of the Federal Reserve in 2013, the reasoning being you couldn't put your fate in the hands of private bankers.

The Great Depression gave rise to the Glass-Steagall Act, and essentially the Glass-Steagall Act restricted banks from taking deposit money and doing risky stuff from it.