Tag: investment adviser regulation
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The Collapse of SVB: Thoughts on Moral Hazard, Market Fundamentalism, Fiduciary Duties, and the Scope of Government Regulation
ON THE EXISTENCE OF MORAL HAZARD IN BANKING (ONCE AGAIN) The collapse of Silicon Valley Bank and Signature Bank in led to a March 12, 2023 joint statement from Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg, in which they declared, with respect…