The banking crisis set off by the swift collapse of Silicon Valley Bank (SIVB.O) has exposed a sharp disconnect between Washington and Wall Street. Bankers want faster, more aggressive action to shore up the industry, while the Biden White House and regulators argue they’ve done what they can within the limits of the law.
Some critics are asking whether the Biden administration could have contained the crisis with aggressive actions at the start.
“Policymakers have done some things that are helpful, but they haven’t broken out the big bazooka yet and we have not passed the point of major vulnerabilities,” said Edward Campbell, co-head of the multi-asset team at PGIM Quantitative Solutions. “They’re going to have to do more.”