the.com/bank regulation
the rulebook that stops other people's greed from becoming your problem.
means a system of laws and oversight requiring banks to hold enough capital, disclose enough truth, and take on only so much risk with your money.
from born in fits and starts after panics, from the founding of the fed in 1913 to glass-steagall in 1933, then rewritten again after 2008 gave the world dodd-frank.
capital requirementsbanks must hold buffers against their own bad bets
stress testsregulators simulate crashes before crashes simulate themselves
deregulation cyclesrules loosen right before the next crisis arrives
too big to failsome banks are regulated because collapse is unthinkable