The Lingering Banking Crisis: Managing Risk and Doom Loops.

US regional banks are facing a crisis of confidence as deposit flight has forced them to pull back on lending, with three banks collapsing and others being hit. The uncertain economic outlook and other risks are adding to the pressure, and continued stress on these banks could push the economy into a recession. Regulators, bankers, and experts are floating ideas for additional steps Washington could take to stamp out the crisis, but those options either encourage things that regulators don't want or are steps that have not really worked in the past. This leaves regulators with tools that treat the symptoms but have unwanted side effects and don't provide the cure, creating a vicious cycle and putting pressure on regulators to intervene again.