In recent days, New York Community Bank has teetered on the brink of failure (se

In recent days, New York Community Bank has teetered on the brink of failure (see the video below, recorded on March 1, 2024. There may have been further developments since then.) Most recently bank representatives have disclosed that executives had discovered “material weakness” in how the bank tracks loans, and the bank has changed much of its leadership. All of this comes a few months after New York Community Bank acquired many of the assets of the failed Silicon Valley Bank last Spring.
What does this say about the manner in which the federal government unwinds failed banks? What flaws may have been involved in the process and what would you suggest to improve the process? How do regulators strike a balance between macro-prudential regulation and permitting businesses to operate as they see fit? How might this bank’s predicament affect the overall economy and your personal life?