The March 2023 banking sector turmoil: Policy considerations for the regulation of large banking organizations
Davis Polk partner David Portilla authored “The March 2023 banking sector turmoil: Policy considerations for the regulation of large banking organizations” in Business Law Today. In the article, David reviews aspects of Silicon Valley Bank, Signature Bank and First Republic Bank’s failures, in particular, the effect of rising interest rates, including on longer-duration securities; some of the precipitating events; and whether the failures provide lessons about the regulatory tools that might have led to a different outcome. He also explores a series of approaches that could be considered to address the attributes of the March 2023 banking sector turmoil that would be less drastic and disruptive than wholesale changes to the prudential regulatory framework.