A SQUARE

Separating banking functions from risk-taking activities

Thursday, July 24, 2008

If you can figure a way to rid the US of the Federal Deposit Insurance Corporation (FDIC) and the moral hazard it creates you will have solved the periodic Banking crisis that occurs.

A SQUARE :: 24Jul08 Separating banking functions from risk-taking activities
Category	Banking
Faculty	Thomas G. Siska
Expertise	Banking
Author	Sona Blessing
"While institutions, such as Fair Isaacs and the Rating Agencies, lobby heavily to be the private sector risk assessors for the FDIC, they have no 'free market' credibility in that they bear no risk should they be wrong in their assessment. I have always sought a private sector, at risk solution to the FDIC and I believe there is a fairly simple way of achieving this."
Download this research	The many benefits of an A SQUARE subscription	Recommend to a friend

<< A SQUARE archive sorted by date << A SQUARE archive sorted by category

Article link

More research related to Banking

[18Dec08] [Biodiversity Banking] Trading species for conservation
"It may sound strange, even counterintuitive, but the solution to the loss of biodiversity may actually lie in the very same markets that appear to be causing the problem."

Download

[11Jun08] [Banking] A fund that invests in niche community banks
"Commercial banks have historically experienced low default rates, with an average of 0.34% per annum measured ..."

Download