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TylerJWhit t1_jcb2273 wrote

What regulations are being discussed, and what is the probability that any of these regulations will see the light of day?

At this point, what is the likelihood that the SVB collapse is a contagion?

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politico OP t1_jcb6og8 wrote

Great question Tyler, Sam here: At this stage it's extremely unlikely lawmakers would agree on a bill that would lead to any substantial changes --- like Warren and Porter's rollback of the Dodd-Frank rollback -- would make it across the finish line. Not enough Dems support it and it's a divided Congress. On the other hand, there are definitely signs that bank regulators are looking at things like capital requirements and better supervision. On the latter, one of the issues that's been raised is that regulators didn't spot the problems with SVB's investment portfolio/depositor concentration. Fed Vice Chair Michael Barr is overseeing a review of that as we speak.

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[deleted] t1_jcfk0oc wrote

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TylerJWhit t1_jcfpv9f wrote

I don't think you can confidently state that there's no evidence that other banks are at risk. This was caused by increased borrowing rates, and the Fed has given a lot of indication that they'll increase those rates further to stall inflation. That can cause other banks to fail.

The risk is not 0% even if it's low.

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