The government's role in deposit insurance.

Federal Reserve Bank of St. Louis Review | January 1, 1993| | Copyright

For a discussion of why these problems took so long to reveal themselves, see footnote 7.

3 This is a hypothetical laissez-faire benchmark. It is therefore not to be confused with the pre-FDIC regime, though it certainly has some similarities to that regime. The pre-FDIC regime still had various legal restrictions and interventionary agencies (for example, the Federal Reserve System) that would be absent under the laissez-faire benchmark.

4 I am aware of course that the monitoring of bank management must take place in a world where information is scarce and During ...

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