Davis Polk partner and Financial Institutions practice head Margaret Tahyar was featured on Bloomberg Television’s “The Close.” 

In the episode, Margaret discusses the state of the banking crisis and next steps. “I think we’re entering another phase. It’s panic, emergency measures, then we move to root cause – which some might think of as ‘where are we going to find and assign the blame?’ – and then we move to reform,” she explained. “Linking the root cause to the reform is an important step, otherwise we have a mismatch.”

Margaret also noted that there is a key difference between regulation and supervision. “I think of it as an iceberg. Ten percent is the public stuff: regulations, the law, public guidance – and most of the commentary is on that ten percent – but in the system of how we regulate and supervise banks, ninety percent is the iceberg below the water – it’s what the supervisors do.”

When asked what she thinks the next steps should be in terms of supervision, Margaret said, “I think what should happen is a real change in how we think about supervision. Supervisors are heroes. They are under-resourced, understaffed, doing multiple jobs without the tools and the technology. But they’re also doing it behind the scenes without transparency, and that doesn’t necessarily lead to good outcomes even when you have good people doing it. So, I think we need to find a balance of more transparency and give more resources and more tools to the supervisors.”

“Bloomberg Markets: The Close,” Bloomberg Television (starting at the 1:57:40 mark) (March 30, 2023)  

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