“Only in Washington” is so trite, yet sad truth can be found in what’s so trite. Always looking in the rearview mirror, bank regulators at the Fed are calling for big banks to raise bigger equity capital cushions that would keep them from doing, well, banking. Yes, only in Washington could a solution in search of a problem involve harming those who are supposed to be helped.
The obvious response to the above is that Silicon Valley Bank’s lack of a sufficient cushion amid a run calls for bigger cushions for banks more broadly. It’s the equivalent of making Kansas City Chiefs all-world quarterback Patrick Mahomes take laps since New York Jets quarterback Zach Wilson threw an interception at the end of the game on Sunday.