Levine considered this yesterday as well. If you model bank shares as calls on underlying assets it clearly favors risktaking: https://www.bloomberg.com/opinion

Levine considered this yesterday as well. If you model bank shares as calls on underlying assets it clearly favors risktaking: https://www.bloomberg.com/opinion/articles/2023-03-14/svb-took-the-wrong-risks https://www.bloomberg.com/opinion/articles/2023-03-14/svb-to...