Beyond the Bailout: Long-Term Solutions to the Crisis in Federal Deposit Insurance

Publication Date: March 1989

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Henry N. Butler

Research Area: Banking and finance

Keywords: Economy

Type: Report

Abstract:

The FSLIC crisis demonstrates dramatically that the time has come for substantial reforms in the entire deposit insurance system. Unless the $126 billion plus bailout for FSLIC is accompanied by fundamental insurance reforms, it will be nothing more than an expensive short-term fix. Congress thus must combine the short-term bailout of FSLIC with structural reform of the federal deposit insurance system.