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Too-big-to-fail after FDICIA

Authors :
Wall, Larry D.
Source :
Economic Review (Atlanta, Ga.). Jan-Feb, 1993, Vol. 78 Issue 1, p1, 14 p.
Publication Year :
1993

Abstract

The new Federal Deposit Insurance Corporation Improvement Act was written to stem losses from deposit insurance. The new plan gets somewhat away from the traditional 'too-big-to-fail' concept that regulators had held. FDICIA requires that bank failures be handled, in general, in whatever way generates the lowest costs to the FDIC. Times when the FDIC does not follow this rule would be when a bank failure is a risk to other banks or the nonbanking sector or when the failure interferes too greatly with the bank's consumer services.

Details

ISSN :
07321813
Volume :
78
Issue :
1
Database :
Gale General OneFile
Journal :
Economic Review (Atlanta, Ga.)
Publication Type :
Periodical
Accession number :
edsgcl.13965494