A 2008 type crisis again…or not? (Reuters)

With the recent bank collapses and fears that others would follow, questions of whether we have entered another 2008 type financial crisis inevitably emerged. However, most experts see few similarities, citing the current issues as less complex and the overall financial industry as more healthy. Yet, measures are being taken in light of the previous financial crisis to instill confidence in the banking system and help ensure market stability. Amy Lynch, FrontLine’s Founder and President, comments that the regulators now recognize that the smaller regional banks offer a greater risk to our overall economy than previously thought. She expects them to increase regulation to the extent they can since certain oversight measures from the Dodd-Frank era have been stripped away and these banks now have simpler capital, liquidity and stress testing requirements. It would appear that the regional banks, as well as the larger entities, are now back on the radar to receive greater regulatory scrutiny going forward. See Reuters, “Analysis: Bank panic raises specter of 2008, may bring lasting change“