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Mervyn King’s Proposal for Preventing Bank Runs Deserves Another Hearing

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Mervyn King’s Proposal for Preventing Bank Runs Deserves Another Hearing
U.S. dollar banknotes on Feb. 14, 2022. Dado Ruvic/Illustration/Reuters
Rupert Darwall
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Commentary

March was a bad month for the Dodd–Frank Act. We now know that Dodd–Frank, enacted in the wake of the 2007–2008 banking crisis, doesn’t prevent bank runs. Neither do post–2008 arrangements tell depositors whether large deposits are safe or should be withdrawn with a swipe on a smartphone. This time, uninsured deposits were bailed out.

Rupert Darwall
Rupert Darwall
Author
Rupert Darwall is a senior fellow of the RealClear Foundation and author of the books “The Age of Global Warming: A History,” “Green Tyranny: Exposing the Totalitarian Roots of the Climate Industrial Complex,” and “Going Through the Motions: The Industrial Strategy Green Paper.” Darwall also authored the reports “The Climate Noose: Business, Net Zero, and the IPCC’s Anti-Capitalism,” “Capitalism, Socialism and ESG,” “Climate-Risk Disclosure: A Flimsy Pretext for a Green Power Grab,” “The Anti-Development Bank: The World Bank’s Regressive Energy Policies,” and “The Folly of Climate Leadership.”
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