Cracking down on banks now only makes them sitting ducks for the next big hit

The drama surrounding Silicon Valley Bank, Republic Bank, PacWest Bancorp PACW and other regional banks are provoking tough talk about implementing tighter banking regulations. Those could do more harm than good and won’t avert another crisis.

Apparently both the White House and Federal Reserve want to reimpose on mid-sized banks stricter Dodd-Frank standards rolled back during the Trump administration. Federal regulators appear inclined toward new rules for liquidity, liability structures and capital.

Households…