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Separating banking functions from risk-taking activities

Friday, July 25, 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 :: 25Jul08 Separating banking functions from risk-taking activities
Category Banking
Faculty Thomas G. Siska
Expertise Banking
Author Sona Blessing
Faculty Name
"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."
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