Abstract
As a discussant, I find myself in the awkward position of being in substantial agreement with both Pierce and Todd. My position is awkward because the two papers come to nearly opposite conclusions about bank insulation. James Pierce’s assessment is that bank insulation cannot become a practical reality until the Federal Reserve is taken out of the business of regulating nonbank affiliates. In contrast, Walker Todd concludes that those who advocate additional deregulation without first addressing the safety net problem can be charged either with excessive optimism or with opportunism.
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References
Kane, Edward. 1985. The Gathering Crisis in Federal Deposit Insurance. Cambridge, Mass.: MIT Press.
Kareken, John H. 1983. “The First Step in Bank Deregulation: What about the FDIC?” American Economic Review 73 (May): 198–203.
O’Driscoll, Gerald P., Jr. 1988a. “Deposit Insurance in Theory and Practice.” Cato Journal 7 (Winter): 661–75.
O’Driscoll, Gerald P., Jr. 1988b. “Bank Failures: The Deposit Insurance Connection.” Contemporary Policy Issues 6 (April): 1–12.
Peers, Alexandra. 1988. “Shaky Banks and Thrifts Are Solid Bet for Grabbing Yields.” Wall Street Journal, November 2, pp. C1, C11.
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© 1991 Kluwer Academic Publishers
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O’Driscoll, G.P. (1991). Comment on Bank Insulation. In: England, C. (eds) Governing Banking’s Future: Markets vs. Regulation. Innovations in Financial Markets and Institutions. Springer, Boston, MA. https://doi.org/10.1007/978-1-4684-6714-7_9
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DOI: https://doi.org/10.1007/978-1-4684-6714-7_9
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