Comment: Deposit Insurance in the United States—Evaluation and Reform

Christian T. L. Janssen

Journal of Financial and Quantitative Analysis, 1972, vol. 7, issue 2, 1613-1618

Abstract: Gibson offers a proposal for partial reform of the present system of deposit insurance in the United States.A. The responsibility for insurance should be divided between FDIC and the Federal Reserve. “Normal” bank failures should be handled by FDIC and “depression” failures by the Federal Reserve.B. Insurance should be extended to all deposits regardless of size and should not be limited to those of $20,000 or less.

Date: 1972
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