So, in terms of the broader banking system, I’m confident we’ll be able to contain this situation before it becomes some kind of systemic sequel to the 2008 disaster. "Moreover, the response from the Federal Reserve, bank regulators, and the industry appears to have served to contain the crisis. But with that said, I am concerned by the effects this current crisis could have on smaller and regional institutions. Moreover, the response from the Federal Reserve, bank regulators, and the industry appears to have served to contain the crisis. What we’ve seen recently with the banking debacle was a crisis in confidence as evidenced by the swift outflow of deposits, among other factors, including poor management. What we saw play out 15-years ago was a crisis in credit, crisis in collateral, and a crisis in capital. As I noted, during the 2008 crisis, I was serving my first term on the NCUA Board, and the conditions we saw then were much more alarming than what we see today.
So, to begin with, nothing I’ve seen suggests we are facing another crisis of the magnitude and scope we experienced 15 years ago. And I can understand the concern, especially among those of us who were around during the 2008 crisis – that’s a fresh memory, and none of us wants to see a repeat of that situation. In virtually all of my speaking engagements in the last couple of months, the banking crisis, and its potential impact on both the financial services system and the larger economy, is one of the issues I’m asked about most. I’d much prefer to be able to join you and talk about how great everything is going, but apparently, that’s not the case.īut perhaps I can offer some of my own perspective on the current situation, based on my past experience in working for nearly three decades with Wall Street firms and two stints in public service at NCUA. So, I’m starting to see a pattern emerge here. Well, we survived 2008 and the 2020 pandemic, but now today, we’re seeing notable turbulence unfold in the banking sector. Prior to 2020, I spoke here during my first term on the NCUA Board as Vice Chairman in 2008, when we were going through a global financial crisis, the likes of which none of us had seen in our lifetimes. In fact, by my count, this is my third visit to your group. I do a great deal of public speaking, and while our technological tools are a great convenience, there’s simply no substitute for being able to meet in person. Due to the pandemic, that was a remote virtual presentation, and I can’t even begin to tell you how glad I am we don’t have to do that anymore. It’s my great pleasure to be back with you in person as my last visit to the Women in Housing and Finance Symposium was in 2020 when we were still in the throes of the COVID-19 emergency. Thank you very much for that kind introduction.
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