The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries
AbstractWithout the Great Depression, the United States would not have adopted deposit insurance. While the New Deal's anti-competitive barriers have largely collapsed become" deeply rooted. This paper examines how market and political competition for deposits raised the level of coverage and spread insurance to all depository institutions. A comparison of the cost of federal insurance with a counterfactual of an insurance-free system shows that federal insurance ultimately imposed a" higher cost but achieved political acceptance because of the distribution of the burden.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6063.
Date of creation: Jun 1997
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Publication status: published as White, Eugene N. "The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries". The Defining Moment: The Great Depression and the American Economy in the Twentieth Century. Edited by Michael D. Bordo, Claudia Golden, and Eugene N.White, Chicago: The Univeristy of Chicago Press, 1998, pp.87-121.
Note: DAE ME
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- Eugene N. White, 1998. "The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 87-122 National Bureau of Economic Research, Inc.
- N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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