Regulators Have Largely Acted Constructively. In our view, regulators have broadly acted helpfully since Silicon Valley’s mid-quarter update and failed recapitalization lit the fuse on the current banking crisis. The guarantee of uninsured depositors at Silicon Valley and Signature, the Swiss regulators’ support for Credit Suisse, and the joint central bank action to ensure USD liquidity, appear to have helped limit the failures to a small number of institutions thus far. Yet It Has Not Been Sufficient to Calm Markets. While contagion might have been much more severe absent regulators’ actions, shuttering Silicon ... (full story)