An issue raised by the NYT and not addressed here (aside from speculation about improved regulation) is the moral hazard of the feds stepping in to guarantee funds that were not supposed to be covered by FDIC. Doesn't this encourage riskier behavior by banks? And encourage businesses to deposit in nominally uninsured accounts to gain higher returns?
An issue raised by the NYT and not addressed here (aside from speculation about improved regulation) is the moral hazard of the feds stepping in to guarantee funds that were not supposed to be covered by FDIC. Doesn't this encourage riskier behavior by banks? And encourage businesses to deposit in nominally uninsured accounts to gain higher returns?
An issue raised by the NYT and not addressed here (aside from speculation about improved regulation) is the moral hazard of the feds stepping in to guarantee funds that were not supposed to be covered by FDIC. Doesn't this encourage riskier behavior by banks? And encourage businesses to deposit in nominally uninsured accounts to gain higher returns?