Brewer III, Elijah; Jackson III, William E; Moser, James T - In: Journal of Money, Credit and Banking 28 (1996) 3, pp. 482-97
It has been argued that underpriced federal deposit insurance provides incentive for insured institutions to increase the value of shareholder equity by expanding into activities that shift risk onto the deposit insurer. Derivative instruments have been used by firms to change their risk...