Banks are forced to raise capital because regulators look back at 2010-2012 (bad years) when banks took losses not just on private mortgage securities but also huge costs in fines and settlements, so they assume a similar crisis could occur despite changed market structure.
causalpending
Speaker
Chris WhelanEvidence Quote
“they look back and when they look back they see 2010 2012 which were bad years and banks not only took losses on private securities but they had huge costs fines settlements”
Source
The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wang & Chris Whalen— Forward GuidanceCreated: 8/11/2026, 1:23:06 AM
My Notes
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