For 15 years, regulators and legislators have assumed the biggest risks to the financial system came from a handful of “too big to fail” banks. This month’s failure of Silicon Valley Bank and Signature Bank—and last week’s bank-led rescue of a third lender, First Republic Bank FRC 39.67% increase; green up pointing triangle—suggests that focus on size may have blinded officials to the threat posed by smaller lenders, observers and former regulators say.
Source: WSJ.com: US Business
