THE BASIS POINT

David Stevens makes a case for why banks are bigger risk takers than nonbanks

In his most recent newsletter, prominent banking and housing industry consultant David Stevens asks the following about regulators’ role in the 2023 banking crisis:

Where were the regulators? Why didn’t anyone at any number of Federal agencies foresee the basis risk that was so obvious to those with institutional memories from the past.

He then offers 3 reasons why.

1. Regulators were looking too much at nonbanks and not enough at banks.

2. The Fed overstepped on the inflation fight.

3. Regulators were more concerned with credit weakness than interest rate risk.

Go check out David’s piece, linked below.

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Reference:

3 Lessons From SVB and the Non Bank Conundrum

 

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