By William M. Isaac – Instead, the FDIC should have turned to its 1982 innovation: the modified deposit payoff. This would ameliorate the damage a bank failure inflicts on the economy without creating the moral hazard accompanying a 100% guarantee. Uninsured money that would otherwise sit idle for years at the failed bank receivership would be returned promptly to the local marketplace to support economic growth. Read More
The FDIC Has a Proven Way to Avoid Moral Hazard
Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8