America risks propping up zombie banks
The banking crisis may have calmed, but only because of a government backstop
FROM THE calm of financial markets, it may seem as if America’s banking crisis is over. No more lenders have failed since March 12th. Banks’ stock prices appear to be settling at about a quarter beneath their level at the end of February. Policymakers are no longer fighting financial fires, but are telling congressional hearings about the lessons to be learned. President Joe Biden says the administration has done “a pretty damn good job”.
This article appeared in the Leaders section of the print edition under the headline “Beware of zombies”
From the April 1st 2023 edition
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