Well folks, get ready for a good laugh because we have an article about bank regulations. Yes, you read that right, banking regulations. But don’t worry, we’re going to make it funnier than trying to explain blockchain to your grandparents.

So, back in the day, like eight years ago, Michael Barr warned Congress not to loosen bank regulations because multiple midsize banks failing at the same time could be a sign of broader weakness in the financial system. And wouldn’t you know it, here we are now, with Barr leading the Fed’s review of what went wrong with Silicon Valley Bank (SVB). Maybe he should have heeded his own advice.

The report is due May 1, and Barr is expected to recommend stricter laws for midsize banks, like SVB, and tougher rules on how much capital banks must have in reserve. He’s also probably going to suggest undoing the changes made to weaken oversight before he arrived. Man, it’s almost like he’s saying, “Hey, I told you so!”

The big question everyone’s asking is why no one saw this coming. I mean, come on, guys, isn’t that like saying “Why didn’t anyone predict that the Titanic would hit an iceberg?” We all know hindsight is 20/20. But seriously, Barr is doing his best to figure out what went wrong and how to prevent it from happening again.

Barr’s background is in behavioral economics, consumer protection, and law. He’s a Rhodes Scholar, for crying out loud. He worked on restructuring European economies as they emerged from communism. He’s like a financial superhero, but instead of saving the world, he’s trying to save the banking system.

Before joining the Fed board, Barr was a top adviser and confidant to then-Secretary Timothy Geithner. He also played a key role in establishing the Consumer Financial Protection Bureau. So, basically, he’s the superhuman brainchild behind all the financial reforms.

Now, don’t get us wrong; this is a serious matter. But let’s be real, it’s all just one big game of “Who’s to Blame?” Barr says bank management failed, supervisors failed, and the regulatory system failed. But at least they’re all in it together, right?

Barr is proposing stricter oversight for banks with more than $100 billion in assets, which could include stricter capital and liquidity standards. The White House has also weighed in, calling for banks with between $100 billion and $250 billion in assets to face tighter rules. The banking sector, no doubt, won’t be thrilled.

As for Barr himself, he’s just trying to keep the ship afloat. He’s faced criticism from all sides, and even Sen. Tim Scott called his investigation a “classic case of the fox guarding the henhouse.” Ouch.

But hey, at least there’s a chance for some bipartisanship. Mark Calabria, a longtime Republican Senate aide, says that both parties might actually agree on more regulation for midsize banks.

In the end, we’re all just trying to figure out how to prevent the next financial crisis. It’s like trying to predict the weather; you can prepare as much as you want, but sometimes, you’re just going to get hit with a hurricane. But let’s hope that Barr and his team can create some more “robust rules” to keep us all a little safer.

Serious News: washingtonpost