Unformatted text preview: The cost of the bailout has been estimated at over $500 billion over forty years. Possible Reforms • eliminate deposit insurance entirely • lower the limits on the amount of insurance • allow deposit insurance only at "narrow banks" that invest only in virtually risk free assets like T-bills • provide deposit insurance by private insurers] • base deposit insurance premiums on risk • eliminate branching restrictions • use market-value accounting for capital requirements...
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- Fall '09
- Personal Finance, Fractional-reserve banking, Federal Deposit Insurance Corporation, Federal Home Loan Banks, Deposit insurance, Savings and loan crisis