In early March 2023, three banks failed in just a few days. These banks—Silicon Valley Bank, Signature Bank, and First Republic—were among the biggest banks to fail in U.S. history. The SVB demise triggered the largest single-day bank run in U.S. history and led to aggressive action by the Federal Reserve, FDIC, Treasury Department, and others to prevent spillovers to the rest of the U.S. banking system. One year later, what lessons can be drawn? What changes should regulators and bankers make to reduce the chances of a repeat? And what did the March 2023 incident demonstrate about the adequacy of current approaches to resolving failing banks?
On March 5, the Brookings Institution’s Hutchins Center on Fiscal & Monetary Policy and Center on Regulation and Markets (CRM) reflected on these questions, beginning with a panel on shortcomings of bank supervision, the lender of last resort function, and bank risk management practices that exacerbated the March 2023 crisis and how best to address them. A conversation followed with Rep. Patrick McHenry (R-NC), chair of the House Financial Services Committee. The final panel focused on the weaknesses of the current approach to resolving bank failures that were exposed in March 2023 and how to remedy them. This event is a part of CRM’s Series on Financial Markets and Regulation.
Viewers joined the conversation and ask questions of the panelists by emailing [email protected] or on X/Twitter using the hashtag #BankFail.
Registration is required to attend an event in person and guests at Brookings are required to attest to their state of health before attending. Visitors may not enter the building if they are feeling ill for any reason, have any symptoms commonly associated with COVID-19, or have tested positive for COVID-19 at any time in the preceding 5 days or longer in accordance with current CDC guidance, or have been advised by their healthcare professional or otherwise to not enter any space where some persons may not be vaccinated.
Agenda
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March 5
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Welcome remarks
David Wessel Director - The Hutchins Center on Fiscal and Monetary Policy, Senior Fellow - Economic Studies @davidmwessel -
Panel: Reducing the chances of a repeat of March 2023
Tobias Adrian Financial Counsellor & Director - Monetary and Capital Markets Department, International Monetary Fund @IMFNewsWilliam S. Demchak Chairman, President and Chief Executive Officer - The PNC Financial Services GroupSusan McLaughlin Executive Fellow - Yale Program on Financial StabilityModerator
David Wessel Director - The Hutchins Center on Fiscal and Monetary Policy, Senior Fellow - Economic Studies @davidmwessel -
Fireside chat with Rep. McHenry (R-NC)
The Honorable Patrick McHenry (R-N.C.) Chairman of the House Financial Services Committee - U.S. House of Representatives @PatrickMcHenryModerator
Aaron Klein Miriam K. Carliner Chair - Economic Studies, Senior Fellow - Center on Regulation and Markets @AaronDKlein -
Panel: Resolving failing banks
Jarryd E. Anderson Partner & Co-Chair, Financial Services Group - Paul, Weiss, Rifkind, Wharton & Garrison LLPGary Cohn Vice Chairman - IBMAlexa Philo Senior Policy Analyst, Banking, Systemic Risk, and Economic & Racial Justice - Americans for Financial ReformModerator
Aaron Klein Miriam K. Carliner Chair - Economic Studies, Senior Fellow - Center on Regulation and Markets @AaronDKlein -
Closing remarks
Aaron Klein Miriam K. Carliner Chair - Economic Studies, Senior Fellow - Center on Regulation and Markets @AaronDKlein
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