Kam Hon Chu
January 2011
CATO Journal;Winter2011, Vol. 31 Issue 1, p99
Academic Journal
The article discusses bank runs and deposit insurance policies, focusing on examples from the global financial crisis which began in 2008, and addressing issues such as financial stability and government bailouts. Some problems with deposit insurance are analyzed, such as moral hazard, and it is noted that the threat of possible bank runs tends to foster a more prudent approach to financial risk. The question of whether banking regulatory agencies have a history of successfully preventing or correcting market failures is also addressed.


Related Articles

  • Introducing 20-Year-Old 'Start-Ups' Fajt, Marissa // American Banker;10/5/2009, Vol. 174 Issue 183, p1 

    The article presents a discussion of the U.S. Federal Deposit Insurance Corp. (FDIC), focusing on its regulations regarding the creation of banks, or purchases of banks by investors from outside the banking industry. These regulations are said to have become increasingly stringent, in reaction...

  • the moral of the story. BANGAY, TOM // IBA Global Insight;Jun/Jul2013, Vol. 67 Issue 3, p18 

    The article talks about the effects of the global economic crisis in 2008 and its lasting effects felt by countries in 2013. The author discusses the 'moral hazard' of using taxpayers money to bailout, even indirectly fund, the risks and risk-taking behaviors of the finance industry. The author...

  • Time to Help Community Banks in Crisis. Ludwig, Eugene A. // American Banker;9/18/2009, Vol. 174 Issue F306, p9 

    The article offers the author's views on the effect of the global financial crisis on U.S. community banks. The author is concerned that more government regulation will negatively impact the banking industry and the American economy. He talks about the Federal Deposit Insurance Corp. and the...

  • FINANCIAL CRISIS - IS THERE A DIFFERENT APPROACH IN THE U.S.A. AND EUROPE? Polouček, Stanislav // 12th International Conference on Finance & Banking: Structural &;2009, p455 

    The recent financial crisis started a detailed discussion to find its basic causes as well as how to predict future crises and how to minimize their negative impacts. The United States has reacted to this crisis differently than Europe. Policy of deregulation, moral hazard of managers in large...

  • Credit Rating Agencies and Moral Hazard. Bo�ovic, Milo�; Uro�evic, Branko; �ivkovic, Bo�ko // Panoeconomicus;Jun2011, Vol. 58 Issue 2, p219 

    The failure of credit rating agencies to properly assess risks of complex financial securities was instrumental in setting off the global financial crisis. This paper studies the incentives of companies and rating agencies and argues that the way the current rating market is organized may...

  • FDIC Reduces Annual Budget as Financial Crisis Recedes. McKendry, Ian // Americanbanker.com;12/16/2014, p1 

    The Federal Deposit Insurance Corp. approved a 3% budget reduction for 2015 on Tuesday as funding needs for handling troubled banks continues to diminish.

  • Did the Federal Reserve's lending during the recession violate the law?  // Monthly Labor Review;Sep2012, Vol. 135 Issue 9, p35 

    The article discusses the issue whether the move of the U.S. Federal Reserve to lend money to undercapitalized banks during the financial crisis in 2007-2010 violated the 1991 Federal Deposit Insurance Corporation Improvement Act (FDICIA). The law states that the Federal Reserve may lend money...

  • Spotlight: Bank Failures. Gandel, Stephen // Time;10/26/2009, Vol. 174 Issue 16, p16 

    The article discusses bank failures, noting the fact that 100 U.S. banks are projected to fail in 2009. It cites the U.S. Federal Deposit Insurance Corporation (FDIC) and its assessment that more than 400 banks are at risk of failure. The article avers that the U.S. banking system is not at risk...

  • Most Banks Sticking with TAG Program. Adler, Joe // American Banker;11/18/2009, Vol. 174 Issue 208, p1 

    The article reports that the U.S. Federal Deposit Insurance Corp. (FDIC) was attempting to end its blanket deposit insurance coverage program, which it had instituted in response to the global financial crisis that began in 2008. A majority of banks, however, wanted to continue the program, in...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics