Unintended Consequences and Deposit Insurance

I’m working on a longer piece about the unintended consequences of current policy — e.g., ballooning deposit insurance allowing small banks and others to end-run the Treasury bailout via CDARS — so you can see why this new OECD chart struck me. There has been an incredible sea-change in the world of global deposit insurance, and the consequences, while not entirely knowable, will also not be what regulators currently expect.

deposit-insurance

Related posts:

  1. Quiz Question: Only OECD Country Without Deposit Insurance
  2. The Promise and Peril of Comprehensive Deposit Insurance
  3. Unintended Consequences of Big-Screen TVs
  4. Real Estate & Unintended Consequences
  5. Links: Dirt, Britain, Unintended Consequences, etc.

Comments

  1. Karl Waldman says:

    Actually – US could be higher – I had one large bank send me a flyer describing how they could protect more the $250k since they actually owned multiple other banks. They would split it up for you across their other entities ensuring each had less than the limit. Of course if I had that kind of I wouldn't give it to them – I would give it to my good friend Bernie,,, oops strike that