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What part of FDIC do you find to promote irresponsible mortgage lending? And that’s another story from before the regulation was re-targeted to lessen the burd
by awinder 8y ago
What part of FDIC do you find to promote irresponsible mortgage lending? And that’s another story from before the regulation was re-targeted to lessen the burden on small banks
- CryptoPunk 8y agoThe FDIC protects depositors whose banks engage in irresponsible mortgage lending. It erodes the micro-economic incentives for creditor discipline that derive from 'skin in the game'. As for the partial roll-back, it's better than nothing, but we'll see in five years if it will have much of an impact: https://bankdirector.com/issues/regulation/crapo-bill-only-drop-bucket-deregulation/ https://bankdirector.com/issues/regulation/crapo-bill-only-d...
- awinder 8y agoAnd you know the history of what happens when FDIC doesn’t exist I assume, which was that banks acted the same way and regular people got washed out.