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Similarly, the central bank has moved to liberalise interest rates, but progress has been slow, with deposit rates still capped.
Indeed, part of the appeal of multi-purpose banking is the ability to sell higher-margin products to customers with deposit accounts.Other reasons are rooted in psychology.
Having begun in 1934 with deposit insurance of $5,000 per account, in 1980 the FDIC had raised that amount to $100,000 for each deposit.
The industry is tightly regulated, with deposit interest rates controlled by the authorities and all bank savings enjoying the implicit backing of the state.
The prevention team could also advise the applicant that, if they prefer, they could find their own private sector accommodation and the homelessness unit could help with deposit or other financial assistance.
In testimony before the House last August, Sheila C. Bair, assistant secretary for financial institutions, quoted Federal Reserve data suggesting that only 2percentt of households with deposit accounts had any uninsured deposits.
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The account does not, however, come with deposit-by-phone.
Even so, the F.D.I.C. deals only with deposit-taking institutions, not investment banks, several of which, like Lehman Brothers and Merrill Lynch, have failed or come close.
Banks retort that they need to compete with deposit-hungry Greek rivals and a dysfunctional co-operative sector that is run by "butchers and farmers", in the words of a dismissive commercial banker.
Although the government is likely to go ahead with deposit-insurance reform, it can, in an emergency, find new ways to protect depositors for instance, by temporarily nationalising banks.
Mr Bhidé of Columbia University calls for a return to "more primitive finance", with deposit-taking banks strictly regulated and strictly separated from the more innovative, risky financial firms, to avoid a repeat of the recent contagion.Main Street will recover only when America's finances are on a sounder footing.
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