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Article: The great deposit insurance debate.
- Article from:
- Federal Reserve Bank of St. Louis Review
- Article date:
- July 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Federal Reserve Bank of St. Louis. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Glass agreed to support a deposit guaranty in exchange for provisions for significantly expanded Federal Reserve authority:
With these provisions, dependent upon them in fact, the Senate bill drafters were willing to accept the new Steagall bill for the insurance or guaranty of bank deposits in Federal Reserve member banks--but in member banks only.(141)
In the second stage, the dual banking supporters obtained several concessions, most notably: immediate insurance coverage for non-member banks under the temporary plan, and In the stress of the recent banking crisis ... there was a very definite appeal from bankers for the United States Government itself to ...