This Is Why Bank Regulators Have Such A Hard Time Getting Ahead Of A Crisis

knot

Photo: woodleywonderworks on Flickr

So last night it was reported that the Federal Reserve is now engaging European banks in the US to make sure they’re adequately funded.It’s good that the Fed is doing that (though perhaps bad that the Fed didn’t do so earlier).

Either way, the news isn’t going over well, as European banks are getting smashed today.

Hence a major problem for regulators: The mere act of looking at a problem gets people to freak out.

Kind of a tough not to crack, that one.

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