Brookings Institution's Klein on US Bank Turmoil

The video discusses the potential for the FDIC to insure all U.S. bank deposits and the implications of such a move, including moral hazard. It critiques the bailout of uninsured depositors at Silicon Valley Bank, highlighting regulatory and supervisory failures. The role of the Federal Reserve is examined, questioning its accountability and effectiveness in bank regulation. The video concludes by addressing the need to restore trust in the financial system to prevent further contagion.

What are the challenges in holding the Federal Reserve accountable for its regulatory role?

What role does trust play in the stability of the financial system, according to the speaker?

How can policymakers restore confidence in the banking system after a crisis?