The Federal Home Loan Banks are part of a system created by the federal government to promote home ownership. This Commentary looks at new initiatives undertaken by these government-sponsored enterprises to expand their role in financial markets-and the attendant implications for their balance...

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...

An examination of the contributions of economic and managerial factors to commercial bank failures in the 1980s.

A critical analysis of the probable effects of national depositor preference--a provision of the Omnibus Budget Reconciliation Act of 1993--showing that although the FDIC may experience some cost savings in the short term, the long-term benefits are likely to be greatly diminished.

An argument that capital forbearance for thrifts in the 1980s was at best a misguided policy whose costs will have long-term consequences for the health of both the nation's depositories and the overall economy.

Over the last 10 years, the Small Business Administration has been responsible for well over $100 billion in small business credit extensions, more than any single private lender. This Commentary explores the motivations for such a large investment of taxpayer dollars.

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.

A discussion of how the FDIC's policies for handling bank failures can have unintended, and undesirable, effects on the banking system.

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...