Verkkoin this episode, he explains why banks fail, and lays out the four paths that banking reform could take in the future. Verkkoa bank failure is the closing of a bank by a federal or state banking regulatory agency. The fdic is named as receiver for a bank's assets when its capital levels are too. These paper losses started piling up in 2022 when the fed began tightening its monetary policy, which pushed up bond yields. Verkkothree economists have shared the 2022 nobel prize in economics for their pivotal theory of how banks work and how they fail. Close to 190 banks could collapse, according to study. Last week, first republic bank became the third bank to collapse, the. Verkkowhy did these banks fail? Are they the first three failures in what could be a string of bank collapses? Or did the action of regulators stem the crisis? What policies are needed to make banks more resilient? Econofact chats welcomes back jeremy stein to discuss these issues.
