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> There will be pressure to reintroduce the Dodd-Frank stress tests that the Trump administration Can't they just up the capitalization requirements and get t
by DubiousPusher 4y ago
> There will be pressure to reintroduce the Dodd-Frank stress tests that the Trump administration
Can't they just up the capitalization requirements and get the same effect with far less red tape and billable hours for consultants and lawyers?
- danans 4y agoIANA-Economist, but I believe the reason that capitalization requirements aren't sufficient is because of the "Last Taxi Problem", described in this article: https://www.clevelandfed.org/publications/economic-commentary/2020/ec-202005-evolution-bank-capital-requirements https://www.clevelandfed.org/publications/economic-commentar...