How do you teach banking law to college students after the collapse of Silicon Valley Bank? That’s the question Adam Levitin, a professor of law at Georgetown University, asked this week, arguing that the statutes laid out after the Great Recession of 2008 are being ignored by regulators and bankers.
“I don't usually teach the core prudential regulation banking law class, but I really feel for colleagues who do,” he wrote in a Thursday CreditSlips article, referencing so-called “prudential regulations” that are meant to limit the risks banks face. “How can you teach the students the formal rules…when you know that the rules aren't followed?”
