Deposit insurance: a market-based reform proposal. (Federal Deposit Insurance Corp.): An article from: Review of Business

This digital document is an article from Review of Business, published by St. John's University, College of Business Administration on December 22, 1991. The length of the article is 2976 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Federal deposit insurance needs restructuring because the Federal Deposit Insurance Corp's (FDIC) current state incurs costly bailouts of failed banks and savings and loan associations. Among many proposed changes, the only viable way to reform the FDIC is to increase banks' equity capitals so that the FDIC, in order to avoid losses, will recover only 90% of assets during liquidations. As such, banks will be mandated to issue subordinated debt equal to 5% of their assets. Consequently, it becomes incumbent upon debt holders to watch banks closely since they will be paid last if banks fail.

Citation Details
Title: Deposit insurance: a market-based reform proposal. (Federal Deposit Insurance Corp.)
Author: William Field
Publication:Review of Business (Refereed)
Date: December 22, 1991
Publisher: St. John's University, College of Business Administration
Volume: v13 Issue: n3 Page: p30(4)

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