Good banking requires broad public backing FINAL Edition
- Banking structure: A superior alternative is the financial services holding company. Riskier activities, such as insurance underwriting, would be conducted in separate affiliates; the federal safety net would not be extended to them. Normal bank functions would still be conducted within the bank;...
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| Published in | USA today (Arlington, Va.) |
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| Main Author | |
| Format | Newspaper Article |
| Language | English |
| Published |
McLean, Va
USA Today, a division of Gannett Satellite Information Network, Inc
01.06.1990
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| Online Access | Get full text |
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| Summary: | - Banking structure: A superior alternative is the financial services holding company. Riskier activities, such as insurance underwriting, would be conducted in separate affiliates; the federal safety net would not be extended to them. Normal bank functions would still be conducted within the bank; federal regulators would police the holding company's affiliates to assure compliance. - Deposit insurance: Additional market discipline should be injected into the banking system. However, the present guarantee of deposits under $100,000 should be retained. To achieve a higher level of discipline, deposits in excess of $100,000 would be paid off up to only 90% of the amount over $100,000 - a $200,000 account would receive a payment of $190,000 at time of liquidation. Additional measures to enhance discipline include firm early intervention policies and higher capital standards. |
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| ISSN: | 0734-7456 |