Viewpoints Insurance Reform Just Tip of Banking Iceberg Home Edition

As Federal Deposit Insurance Corp. Chairman L. William Seidman noted in recent testimony before the Senate Banking Committee, the S&L crisis is "a financial disaster of major proportions." But, as he also pointed out, "the S&L crisis and the difficulties facing the banking ind...

Full description

Saved in:
Bibliographic Details
Published inThe Los Angeles times
Main Author Johnson, Thomas S
Format Newspaper Article
LanguageEnglish
Published Los Angeles, Calif Los Angeles Times Communications LLC 21.10.1990
Online AccessGet full text

Cover

More Information
Summary:As Federal Deposit Insurance Corp. Chairman L. William Seidman noted in recent testimony before the Senate Banking Committee, the S&L crisis is "a financial disaster of major proportions." But, as he also pointed out, "the S&L crisis and the difficulties facing the banking industry should not be confused." In conclusion, I see deposit insurance reform as part of a far larger set of challenges. Perhaps FDIC chief Seidman said it best recently in testimony before the House when he referred to "the structural obstacles to the maintenance of a healthy banking system." "To be effective," he said, "deposit insurance reform must embrace these structural problems. Deposit insurance reforms that do not deal with the structural problems will produce few lasting improvements in the deposit insurance system and will not materially reduce the ultimate exposure of the taxpayer to difficulties among banks and thrifts. The purpose of deposit insurance reform should not be to hold together an antiquated banking industry."
ISSN:0458-3035