“Banking should be boring”
A year ago, as regional lenders found themselves thrust into the public spotlight, banking was anything but tedious. For an industry underpinned by trust—the belief that customers’ deposits will be safe—the rapid implosion of Silicon Valley Bank and two other large regional institutions offered a heart-stopping glimpse of a less-than-boring financial sector.
Now, regional banks are working to rebuild trust and explain all the ways they’re not like the high-flying companies that failed. And the industry is coalescing around a new image: stodgy, stuffy and dull.
“Banking should be boring,”
Politicians and academics have long made the case that regulators should force banks to be as uninteresting as possible.
In the wake of last year’s failures, Massachusetts Democratic Senator Elizabeth Warren told CNBC that she wanted banking to get back to “where it ought to be, and that is boring.”
Bloomberg 2 May 2024
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https://englundmacro.blogspot.com/2023/03/a-new-chapter-of-capitalism-idea-that.html
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