| Course | FIN 335 Financial Markets |
|---|---|
| Module | Module 8 |
| Paper type | undergraduate discussion post on financial regulation after the 2023 bank failures |
| Length | About 360 words, 3 pages |
| Format | APA 7 student paper |
| School | Southern New Hampshire University |
| Program | BS Finance |
| Updated | October 2026 |
Free sample paper for FIN 335 Module 8
Module Eight Discussion
After the Spring of 2023
In March 2023, Silicon Valley Bank lost $42 billion of deposits in one day and failed on March 10. Signature Bank failed two days later, and First Republic followed on May 1. Invoking the law's systemic-risk provision, regulators made every depositor at the first two banks whole, and the Fed opened an emergency lending program. At the composite Billings bank I have followed this term, the treasury team spent that weekend calling its largest depositors.
The Fed's own review faulted Silicon Valley Bank's managers for ignoring rate and liquidity risk and its supervisors for not acting quickly enough on problems they had identified (Board of Governors of the Federal Reserve System, 2023). The FDIC then charged a special assessment to recover the cost of protecting uninsured depositors, applied only to banks with more than $5 billion of uninsured deposits, so community banks like the one in Billings did not pay it. In mid-2023, regulators updated their liquidity guidance to tell banks to keep their discount window access ready, with collateral pledged and borrowing tested. The FDIC (2023) laid out options for deposit insurance, from keeping the limit to insuring everything, and favored higher coverage targeted at business payment accounts, a change that would need Congress. Larger-bank capital and debt proposals followed, but several have been revised and remain under debate.
For a community bank, the readiness push was the most useful change. Diamond and Dybvig (1983) explain that runs happen when depositors fear others will withdraw first, so a bank that can borrow against its loans within hours gives depositors less reason to run. The Billings bank now pledges farm and commercial loans at the Fed, tests a small borrowing each quarter and can draw more than $300 million in a day. That would not have saved a bank whose deposits were 94 percent uninsured and connected through the same group chats, but it makes a slower run much less likely to end in a fire sale.
If you could make one change to deposit insurance, would you raise the limit for business payment accounts, and how would you pay for it?
References
Board of Governors of the Federal Reserve System. (2023). Review of the Federal Reserve's supervision and regulation of Silicon Valley Bank. https://www.federalreserve.gov/publications/files/svb-review-20230428.pdf
Diamond, D. W., & Dybvig, P. H. (1983). Bank runs, deposit insurance, and liquidity. Journal of Political Economy, 91(3), 401-419. https://doi.org/10.1086/261155
Federal Deposit Insurance Corporation. (2023). Options for deposit insurance reform. https://www.fdic.gov/analysis/options-deposit-insurance-reforms/
What the FIN 335 Module 8 instructions ask for
The final FIN 335 discussion often asks about the regulation of financial markets and institutions: why regulation exists, how it responds to crises and whether recent changes go far enough or too far. Some prompts ask about a specific event, such as the 2008 crisis or the 2023 bank failures. A strong post describes the regulatory response accurately and with dates, distinguishes rules that were adopted from those only proposed, and takes a position on what was most useful, supported by sources. Check whether the prompt asks you to evaluate regulation in general or a particular event, and whether it wants a position or a summary.
How this FIN 335 Module 8 discussion example is built
The post recalls that Silicon Valley Bank failed on March 10, 2023, followed by Signature Bank two days later and First Republic on May 1. It summarizes the Fed's review, which faulted both the bank's management and its supervisors, and the FDIC's special assessment to recover the cost of protecting uninsured depositors, charged to banks with more than $5 billion of uninsured deposits. It describes regulators' push for banks to prepare to borrow at the discount window and the FDIC's options for deposit insurance reform. For a community bank, it argues, liquidity readiness was the most useful change. It closes by asking classmates whether they would raise insurance limits for business payment accounts and how they would pay for it.
Where the FIN 335 Module 8 rubric puts the points
Graders of this final discussion typically weigh accurate description of regulatory changes, distinction between adopted and proposed rules, use of sources, a reasoned position and replies to classmates. Posts that score well use dates and official sources, explain the purpose of each change and connect it to the causes of the crisis. Posts lose credit for describing proposals as final rules, for general statements that regulation is good or bad and for ignoring how rules affect institutions of different sizes. Some instructors also reward posts that consider how a rule affects small and large institutions differently. Clear writing and a direct answer to the prompt also count.
FIN 335 Module 8 help: the mistakes that cost points
Regulation changes quickly, so check the current status of any rule before calling it final. Official sources, such as the Fed's and FDIC's own reports and press releases, are the safest. Link each change to a cause of the failures, such as uninsured deposits or unmanaged rate risk. Take a position on which change matters most for one type of institution. In replies, ask classmates whether their preferred reform would have saved Silicon Valley Bank. Keep the timeline short and accurate, with official sources for each step. Avoid predicting how pending proposals will end; say what is known now. In replies, suggest a source that would help a classmate confirm the status of a rule.
Get FIN 335 Module 8 written to your instructions
Send the FIN 335 Module 8 prompt. Your post will summarize a regulatory response accurately, judge what worked with evidence and end with a question for classmates to debate. About two days; your first post is free. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
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FIN 335 Module 8 questions, answered
Where can I find a free FIN 335 Module 8 Discussion sample?
This page includes the full FIN 335 Module 8 post on the regulatory response to the 2023 bank failures.
Why did Silicon Valley Bank fail?
Rising rates created large losses on its long-term bonds, and its mostly uninsured, closely connected depositors withdrew funds very quickly once those losses became known.
What is the FDIC special assessment?
A fee the FDIC charged to banks with large amounts of uninsured deposits to recover the cost of protecting uninsured depositors at the failed banks in 2023.
What is discount window readiness?
Preparing in advance to borrow from the Federal Reserve, by pledging collateral and testing the process, so a bank can obtain funds quickly in a crisis.
What deposit insurance reforms have been discussed?
Options include keeping the current limit, insuring all deposits, or raising coverage for certain accounts, such as business payment accounts, which the FDIC favored in its 2023 report.