With the passage of the Financial Modernization Act in 1999, the FDIC began reforming our system of federal deposit guarantees. Among the possibilities it has recently raised is a merger of its Bank Insurance Fund with its Savings Association Insurance Fund. This Economic Commentary explores...

A discussion of various proposals to allow the Federal Deposit Insurance Corporation to vary the cost of deposit insurance on the basis of risk.

Deregulation and financial consolidation have led to the development of financial holding companies—allowing commercial banking, insurance, investment banking, and other financial activities to be conducted under the same corporate umbrella—and the Federal Reserve has been named supervisor...

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.

A discussion of the hypotheses that high levels of interbank exposure reduce the safety and soundness of the banking system and that interbank exposure affects the ability of the FDIC to use market discipline as a constraint on banks' risk-taking, with comment on Fourth Federal Reserve District...

A discussion of the fundamental economic principles to consider in evaluating proposals to reform the current system of federal deposit insurance.

An examination of the risks associated with leveraged buyouts and a discussion of the current response of federal bank regulators to the increased participation of banks and bank holding companies in funding LBOs, stressing the need for appropriate internal controls.