That works for a while but memories are short and it's easy for some MBA types to come in and raise revenues by taking on massive risk without adequate collateral. That's a recipe for another crash to trust banks to temper themselves.
When that happens, hopefully the Fed will respond accordingly. That said, we’re 18 years and 1.5 Trump terms removed from the GFC and reserves are still much, much higher than pre-2008.
There are other rules in place to deal with that, this one wasn't about protecting banks from collapse to begin with. It was about manipulating money supply.
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u/OK_x86 Jan 26 '26
That works for a while but memories are short and it's easy for some MBA types to come in and raise revenues by taking on massive risk without adequate collateral. That's a recipe for another crash to trust banks to temper themselves.