Five Ways to Stop the Next Banking Disaster: Bill Dudley

When banks collapse, the question always arises: Where were the supervisors? Time and again — at Silicon Valley Bank, at Credit Suisse, ahead of the 2008 subprime mortgage crisis — they’ve failed in their responsibility to ensure the safety and soundness of both individual institutions and the broader financial system.

Experts rightly say that the culture of supervision needs to change. I’d go further: The priorities and goals need work, too.

Let’s start with culture, the subject of a recent report by a group of seasoned practitioners. All too often, supervisors hesitate to speak up and challenge bank leadership, even ...