Have Big Banks Gotten Safer?

The video discusses the impact of the Dodd-Frank Act on financial regulations, highlighting that despite increased regulatory measures, major financial institutions are not significantly safer than before the crisis. It explores the surprise factors in market stability, where expected outcomes like reduced volatility and lower risk premiums were not observed. The video concludes that while raising capital was crucial, the anticipated market patterns did not materialize, emphasizing the importance of these actions in maintaining financial safety.

What does the teacher imply about the safety of major institutions compared to before the crisis?

What surprising factors did the teacher mention regarding the regulatory apparatus and leverage ratios?

What was the teacher's expectation regarding the volatility of bank stocks after the increase in capital and reduction in leverage?

What patterns did the teacher observe in the data concerning banks' risk premiums and stock volatility?

How did the teacher feel about the effectiveness of the Dodd-Frank actions in raising capital?