Sheila Bair and Charles Goodhart penned an opinion piece in The Washington Post – “Bank failures are looming. Let’s make sure executives have skin in the game.” Key themes are:
- Serious challenges remain for the U.S. banking system.
- Lessons from three high-profile regional bank failures have been forgotten.
- Accountability for executives of failed banks should increase. Passage of the Recoup Act would help.
The Washington Post piece is at
https://www.washingtonpost.com/opinions/2024/02/20/sheila-bair-pass-banking-reform-accounability/
For more on lessons from regional bank failures, please find papers where Sheila (Chair) and Charles contributed in their role as CFS Advisory Board members.
“Supervision and Regulation after Silicon Valley Bank”
www.CenterforFinancialStability.org/research/CFSRegPaper101623.pdf
“The Role of Monetary and Fiscal Policies in Recent Bank Failures”
www.CenterforFinancialStability.org/research/CFSMonPaper101623.pdf