> What meaningful reform happened? There has already been rollbacks of the Dodd-Frank bill in the intervening years[3] and I'm unaware of any regulatory teeth over the derivatives market, for example.
Most derivatives are now centrally cleared, which means centrally reported. SIFIs are held to tight stress testing and reporting standards. Banks have to maintain failure plans. That's just off the top of my head.
All of these components allowed First Republic, SVB and Signature to fail in a way they could not have pre-2008.
> the FDIC has always had this power, and it was well exercised in the S&L crash and its aftermath between 1987-1994
No, it did not. No competent banking lawyer would allege as much.
And the S&L crisis famously involved depositors losing money because the FDIC was hamstrung [1]. The FDIC did not have the power to bail out e.g. AIG in 2008.
> Boring banks are good banks
I strongly recommend an introductory money and banking text [2]. Each of First Republic, SVB and Signature failed due to boring banking mechanisms.
Most derivatives are now centrally cleared, which means centrally reported. SIFIs are held to tight stress testing and reporting standards. Banks have to maintain failure plans. That's just off the top of my head.
All of these components allowed First Republic, SVB and Signature to fail in a way they could not have pre-2008.
> the FDIC has always had this power, and it was well exercised in the S&L crash and its aftermath between 1987-1994
No, it did not. No competent banking lawyer would allege as much.
And the S&L crisis famously involved depositors losing money because the FDIC was hamstrung [1]. The FDIC did not have the power to bail out e.g. AIG in 2008.
> Boring banks are good banks
I strongly recommend an introductory money and banking text [2]. Each of First Republic, SVB and Signature failed due to boring banking mechanisms.
[1] https://www.fdic.gov/bank/historical/history/167_188.pdf
[2] https://www.amazon.com/dp/0134733827?ref_=cm_sw_r_apin_dp_NC...