|Day's range||78.10 - 78.30|
(Bloomberg) -- US banks, already hesitant to work with crypto customers, are now even warier of providing services to the industry after a string of regional-lender collapses and amid heightened scrutiny by regulators. Most Read from Bloomberg$52 Billion Chipmaking Plan Is Racing Toward FailureNew Yorkers Are Moving to These Three Florida Cities$335,000 Pay for ‘AI Whisperer’ Jobs Appears in Red-Hot MarketUS Air Force Plans to End Lockheed Hypersonic Weapon ProgramScotiabank Economist Excoriates
Veteran columnist Joe Nocera says the best way forward for the banking sector is to regulate, regulate, regulate. Nocera joined Julie Hyman and Brad Smith on Yahoo! Finance Live as the Senate's hearing on banking turmoil was underway. He says he was "stunned" by Fed Vice Chair Michael Barr's testimony statement, which says "it is not the job of supervisors to fix the issues identified; it is the job of the bank's senior management and board of directors to fix its problems." The problems present in the banking sector should be addressed, Nocera says, by bringing back the "sensible regulations" originally imposed in the wake of the 2008 financial crisis. Specifically, Nocera mentioned bringing back the stress test for banks, originally introduced under the Dodd-Frank act. The stress test serves as a barometer of how well prepared a bank is to weather uncertain economic conditions. A covered institution must run stress tests on a regular basis, to prove they have sufficient capital to keep afloat under stressful circumstances. Under the Trump Administration, stress test requirements were relaxed significantly; the minimum threshold for banks was raised to $250 billion, and the frequency of tests was reduced across the sector. This allowed smaller banks - like SVB - to slide under the radar. "I think a lot of these problems could have been avoided" had regulations been in place, Nocera says. Key Video Moments: 00:00:25 Bring back the stress test 00:00:36 Reimpose regulations from 2008 00:00:50 Problems could've been avoided if proper regulations had been in place To listen to our full conversation with Joe Nocera, click here.
The Bitcoin-savvy software giant faced unexpected financial challenges due to Silvergate's banking collapse. Yet this surprising turn of events may not have been all doom and gloom.