During the last month we saw ongoing
turbulence in the global banking sector, which remained a major news story. Following SVB and Crédit Suisse, First Republic Bank had to be rescued as
regulators sold its assets to JPMorgan. Relative to the S&P 500,
US Financials have never recovered from the lows they reached in 2009 after the big financial crisis.
Warren Buffett and Charlie Munger, commenting on the current state of the banking sector, highlight the issue of faulty incentives and ethical values among both bankers and their regulators.