I don't know about that.
Looking at the current condition of the banking system, we have had to spend trillions in bailouts, "stimulus", and "quantitative easing" to prop up the system. Yet, there have been record numbers of failed banks.
Banks have made record profits, largely through borrowing money from the Fed virtually interest free and buying Treasuries for a guaranteed profit.
Yet they cannot clear their books of bad loans, and lending is the normal source of profits for them.
It is as if they have taken a three year journey and find themselves standing at the edge of a cliff.
Lerner say that if they were nudged, it might result in disaster.
The money the fed put into the banking system was used to replace funds the banks previously, and illegally, claimed they had but didn’t. They are now sitting of loads of cash, cash they were supposed to lend out as credit but didn’t because they used it to fund the deposits they were supposed to have under FDIC rules.
Bad loans no doubt still plague the banks but adding an additional 8% to the load won’t put them under. Very few banks have held their mortgage notes. They have sold them to many other investors, so their liability for bad mortgage notes is minimal.
Banks are crying poor mouth all the while holding more cash than ever.