In a post on moral hazard in the banking system, Megan McArdle writes, Nor do I find the central story of how the FDIC induced this moral hazard very compelling. Supposedly, ordinary depositors don’t bother to check the soundness of their banks because they don’t actually have skin in the game. Anyone making this argument [...]

Tags: banking, Cowen, deposit insurance, FDIC, Kroszner, McArdle, moral hazard, mutual fund banking, Sumner
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