A perspective on regulatory reform of the financial industry, focusing on the need to revamp the deposit-insurance system and recommending greater reliance on market forces, less reliance on the regulatory apparatus, and the retention of the current framework of multiple regulatory agencies.

An outline of three possible options for capitalizing the Savings Association Insurance Fund, which is in danger of suffering a huge premium disadvantage compared to banks insured by the Bank Insurance Fund, and a recommendation that any solution should first consider the policy objectives for...

This Commentary seeks to shed light on the issue of deposit insurance coverage by examining who would benefit from increases in the insured-deposit limit.

The statement made to Congress concerning the Federal Reserve Bank of Cleveland's role in helping the state of Ohio deal with the financial problems experienced by thrifts insured by the Ohio Deposit Guarantee Fund.

An examination of contagious bank runs and a discussion of how private clearinghouses have protected against widespread bank failures, with the determination that federal deposit insurance may not be necessary to protect against runs; conclusion of February 1 issue.

Federal deposit insurance protects the savings of small depositors, but it increases the likelihood that banks will take risks they otherwise would not have. Some bankers have suggested doubling the level of coverage to $200,000. While such an increase may put smaller banks on a par with larger...

A review of the origins of FDICIA's early intervention policy and the political economy arguments for supporting it, with emphasis on the specific sections of the law that pertain to this policy and the ways in which the new guidelines will impact the future of the nation's depositories.

Stock and bond prices contain all sorts of information about investors’ beliefs and expectations. For example, the interest rate on bank debt not insured by the FDIC has information about the health of the banks issuing the debt. Unfortunately, difficulties in extracting information from these...

A discussion of federal deposit insurance, with the contention that it can be misused and can help destabilize the financial system by permitting insured institutions to take irresponsible risks.

The need for federal deposit insurance is often based on the claim that it prevents bank runs and makes the banking system more stable. But research shows that banks could prevent bank runs by constructing their deposit contracts appropriately, and, in the absence of deposit insurance, they...