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SVB Collapse Shows Smaller Banks Can Pose Risk in Numbers
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WASHINGTON—For 15 years, regulators and legislators have assumed the biggest risks to the financial system came from a handful of “too big to fail” banks.
This month’s failure of Silicon Valley Bank and Signature Bank—and last week’s bank-led rescue of a third lender, First Republic Bank —suggests that focus on size may have blinded officials to the threat posed by smaller lenders, observers and former regulators say.
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Yellen Says U.S. Could Move to Protect Deposits at Other Banks wsj.com /1 year ago
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