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Innovative Strategies for Strengthening U.S. Banks


Published March 28, 2024

Through an in-depth Q&A, Amit Seru and students discuss the complex issues surrounding bank regulation and stability, highlighting the limitations of liquidity injections for insolvent banks and the importance of market signals in identifying solvent institutions. To solve these problems, they explore the benefits of increased equity requirements, innovative approaches to banking such as shadow banks and venture capital models, and the pros and cons to bailouts vs. allowing banks to fail.




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