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Article: The government's role in deposit insurance.
- Article from:
- Federal Reserve Bank of St. Louis Review
- Article date:
- January 1, 1993
- Author:
CopyrightCOPYRIGHT 1993 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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For a discussion of why these problems took so long to reveal themselves, see footnote 7.
3 This is a hypothetical laissez-faire benchmark. It is therefore not to be confused with the pre-FDIC regime, though it certainly has some similarities to that regime. The pre-FDIC regime still had various legal restrictions and interventionary agencies (for example, the Federal Reserve System) that would be absent under the laissez-faire benchmark.
4 I am aware of course that the monitoring of bank management must take place in a world where information is scarce and During the 1980s, banks and thrift institutions failed at a rate the United States has not experienced ...