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The government has already delayed plans to roll back deposit insurance, which were intended to come into effect next April as a way to impose market discipline on the banks' deposit-taking.
First, Mr. Fisher and Mr. Rosenblum suggest rolling back deposit insurance and access to the Federal Reserve discount window to only traditional banks and excluding nonbank affiliates of bank holding companies or parent companies of banks.
This is exactly the sort of product that needs to back deposit accounts saved in the new mutual or state-owned savings banks that must also form part of the post crash financial architecture, based on Post Offices in all probability.
On the way back, deposit $1.25 and ask for a transfer.
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One LDP politician, Ichizo Ohara, fears that pushing back deposit-insurance reform will take away the incentive for banks to restructure and merge.Consolidation among Japan's 100-odd banks (not counting the many credit unions) is badly needed.
1. (C) Summary: On September 29, the Irish government announced plans to back deposits in all Irish-domiciled banks.
In the United States, for example, bank deposits are insured by the Federal Deposit Insurance Corporation, and, as a last resort, the Federal Reserve can back deposits by printing money.
But we now have the worst of all worlds: panics, followed by emergency interventions by central banks, and vague but implicit guarantees to lure back deposits.
Late last year, the project was taken over by one of its investors, Jamestown Properties, and the developer handed back deposits on the sold units and started from scratch.
Many community bankers — as strong a force back then as today — also supported the idea because they believed it would renew customers' faith in the banks, and bring back deposits.
Lawyers have won back deposits for errors as simple as failing to give buyers a legal description of the property or to register the building with the Department of Housing and Urban Development, a basic requirement that many companies nonetheless overlooked.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com