Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: MeganC
There are a limited number of things a bank can do to cover deposits.

The government can insure them.

What is your favorite idea?

6 posted on 08/26/2016 9:49:45 AM PDT by Toddsterpatriot ("Telling the government to lower trade barriers to zero...is government interference" central_va)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Toddsterpatriot

How about the banks insure their own deposits?

I buy fire insurance on my house, paid for out of my own revenue.

Banks can buy insurance, paid for out of their own revenue (the split between what they pay for deposits and what they collect on loans).

If the bank doesn’t loan speculatively, that insurance premium should be fairly minor.


9 posted on 08/26/2016 9:54:54 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 6 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson