In this Q&A session, Economist and Hoover Institution Senior Fellow Ross Levine addresses the core challenges of fixing the banking system after the Silicon Valley Bank collapse. He explores moral hazard, regulatory failures, and the need for accountability, advocating for stronger equity requirements for bank executives and reduced deposit insurance to prevent reckless risk-taking. Levine contrasts American and European regulatory approaches, warning that without reform, the financial system’s instability will continue to threaten economic growth.
Check out more from Ross Levine:
Read “Competition, Stability, and Efficiency in the Banking Industry” by Ross Levine here: https://www.hoover.org/research/competition-stability-and-efficiency-banking-industry-0
Watch “Much Money, Little Capital, and Few Reforms: The 2023 Banking Turmoil” with Ross Levine here: https://www.youtube.com/watch?v=Gf2E1aVh-pM
Read Ross Levine’s Commentary “Trump Wants to Unleash the Banks. End the Bailout Culture First.” in Barron’s Magazine here: https://www.barrons.com/articles/trump-bank-deregulation-2008-dodd-frank-3a94a33c?reflink=desktopwebshare_permalink
Learn more about Ross Levine here: https://www.hoover.org/profiles/ross-levine
__________
The opinions expressed in this video are those of the authors and do not necessarily reflect the opinions of the Hoover Institution or Stanford University.
© 2025 by the Board of Trustees of Leland Stanford Junior University.
🔔 Subscribe for more discussions: @HooverInstitution
👍 Like and share this video!
🌐 Follow the Hoover Institution on social media:
• Facebook: https://www.facebook.com/HooverInstStanford
• LinkedIn: https://www.linkedin.com/company/hoover-institution-at-stanford-university
• Instagram: https://instagram.com/hooverinstitution
• X: https://www.twitter.com/HooverInst
