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Problems Of The Fslic: A Former Policy Maker'S View

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  • LAWRENCE J. WHITE

Abstract

The massive insolvency of the Federal Savings and Loan Insurance Corporation has created a public policy crisis of major proportions. This paper provides a framework for understanding the basic problems of deposit insurance, explores the origins of the current crisis, describes the regulatory response, and discusses the fundamental reforms that still must be undertaken.

Suggested Citation

  • Lawrence J. White, 1990. "Problems Of The Fslic: A Former Policy Maker'S View," Contemporary Economic Policy, Western Economic Association International, vol. 8(2), pages 62-81, April.
    • Handle: RePEc:bla:coecpo:v:8:y:1990:i:2:p:62-81
    DOI: 10.1111/j.1465-7287.1990.tb00591.x
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    References listed on IDEAS

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    1. MacDonald, James M., 1989. "Effects of railroad deregulation on grain transportation," Technical Bulletins 312302, United States Department of Agriculture, Economic Research Service.
    2. R. Dan Brumbaugh, Jr. & Andrew S. Carron, 1987. "Thrift Industry Crisis: Causes and Solutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(2), pages 349-388.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. George J. Benston & George G. Kaufman, 1988. "Risk and solvency regulation of depository institutions: past policies and current options," Staff Memoranda 88-1, Federal Reserve Bank of Chicago.
    5. Devra L. Golbe, 1981. "The Effects of Imminent Bankruptcy on Stockholder Risk Preferences and Behavior," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 321-328, Spring.
    6. James R. Barth & Michael G. Bradley, 1988. "Thrift deregulation and federal deposit insurance," Proceedings, Federal Reserve Bank of Cleveland, pages 231-264.
    7. MacDonald, James M, 1989. "Railroad Deregulation, Innovation, and Competition: Effects of the Staggers Act on Grain Transportation," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 63-95, April.
    8. Lawrence J. White, 1972. "Quality Variation When Prices Are Regulated," Bell Journal of Economics, The RAND Corporation, vol. 3(2), pages 425-436, Autumn.
    9. Seha M. Tinic & Richard R. West, 1980. "The Securities Industry under Negotiated Brokerage Commissions: Changes in the Structure and Performance of New York Stock Exchange Member Firms," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 29-41, Spring.
    10. Edward J. Kane, 1985. "The Gathering Crisis in Federal Deposit Insurance," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262611856, December.
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    Cited by:

    1. Kane, Edward J. & Yu, Min-Teh, 1996. "Opportunity cost of capital forbearance during the final years of the FSLIC mess," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(3), pages 271-290.
    2. Edward J. Kane & Min-Teh Yu, 1994. "How Much Did Capital Forbearance Add to the Cost of the S&L Insurance Mess," NBER Working Papers 4701, National Bureau of Economic Research, Inc.
    3. Kane, Edward J. & Min-Teh Yu, 1995. "Measuring the true profile of taxpayer losses in the S & L insurance mess," Journal of Banking & Finance, Elsevier, vol. 19(8), pages 1459-1477, November.

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