State-Sponsored Insurance of Bank Deposits in the United States, 1907–1929

1981 ◽  
Vol 41 (3) ◽  
pp. 537-557 ◽  
Author(s):  
Eugene Nelson White
Keyword(s):  
United States ◽  
Deposit Insurance ◽  
Banking Industry ◽  
Strong Support ◽  
The United States ◽  
Small Unit ◽  
Bank Deposits ◽  
Key Factor ◽  
Branch Banking ◽  
Federal Deposit Insurance

Before the creation of the Federal Deposit Insurance Corporation in 1933, several states established deposit guarantee funds. The key factor influencing the adoption of deposit insurance by a state was the structure of its banking industry. In states where small unit banks were dominant, there was strong support for guarantee funds to protect deposits; in other states there was more interest in branch banking. The failure to design the guarantee funds in accordance with sound principles of insurance brought about their demise and led to increased branch banking.

Origins of too-big-to-fail policy in the United States

2020 ◽  
Vol 27 (1) ◽  
pp. 1-15
Author(s):  
George C. Nurisso ◽  
Edward Simpson Prescott
Keyword(s):  
United States ◽  
Federal Reserve ◽  
Systemic Risk ◽  
Deposit Insurance ◽  
The United States ◽  
Too Big To Fail ◽  
Interstate Banking ◽  
Legal Constraints ◽  
Federal Deposit Insurance ◽  
Over Time

This article traces the origin of too-big-to-fail policy in modern US banking to the bailout of the $1.2b Bank of the Commonwealth in 1972. It describes this bailout and those of subsequent banks through that of Continental Illinois in 1984. During this period, market concentration due to interstate banking restrictions is a factor in most of the bailouts and systemic risk concerns were raised to justify the bailouts of surprisingly small banks. Finally, most of the bailouts in this period relied on the Federal Deposit Insurance Corporation's use of the Essentiality Doctrine and Federal Reserve lending. A discussion of this doctrine is used to illustrate how legal constraints on regulators may become less constraining over time.

Part II The US Resolution Regime, 5 Fundamentals of Resolution Authority

2016 ◽  
Author(s):  
Gleeson Simon ◽  
Guynn Randall
Keyword(s):  
United States ◽  
Capital Structure ◽  
Deposit Insurance ◽  
Due Process ◽  
The United States ◽  
The Core ◽  
Current State ◽  
The Us ◽  
Insurance Programme ◽  
Federal Deposit Insurance

This chapter looks at the history and fundamental elements of resolution authority as it has been developed and used in the United States. The goal of resolution authority in the United States has been to deal with failed banks and other financial institutions in a manner that stems runs, avoids contagion and preserves critical operations, the same goal as deposit guarantee schemes. First introduced in the United States in 1933 as part of the deposit insurance programme for banks, resolution authority was originally little more than the method by which the Federal Deposit Insurance Corporation honoured its obligations to insured depositors before evolving to its current state. Resolution authority, as conceived in the United States, has two principal components—the core resolution powers and the claims process. The core resolution powers consist of the authority to quickly separate the assets and viable parts of a failed bank's business (the good bank) from its capital structure liabilities (the bad bank), so that its critical operations are preserved and runs and contagion are avoided. It is virtually always completed in the United States over a weekend commonly known as resolution weekend. The claims process involves determining the validity and amount of the claims of individual holders of capital structure liabilities in accordance with ordinary principles of due process and distributing the residual value of the good bank to such holders in satisfaction of their claims. The claims process typically takes at least six to nine months to be completed in order to comply with ordinary principles of due process for potential claimants.

Clearinghouses and the Origin of Central Banking in the United States

1985 ◽  
Vol 45 (2) ◽  
pp. 277-283 ◽  
Author(s):  
Gary Gorton
Keyword(s):  
United States ◽  
Deposit Insurance ◽  
Banking Industry ◽  
The United States ◽  
Central Banking ◽  
Price System ◽  
Endogenous Development ◽  
Banking Panics ◽  
Demand Deposits

The pre-1914 U.S. banking industry is not easily characterized as a market operating through a price system. The endogenous development of the clearinghouse as the industry's organizing institution can be explained by inherent characteristics of demand deposits. During banking panics the clearinghouse united banks into an organization resembling a single firm which produced deposit insurance.

scholarly journals Regulation and Bank Failures: New Evidence from the Agricultural Collapse of the 1920s

1992 ◽  
Vol 52 (4) ◽  
pp. 806-825 ◽  
Author(s):  
David C. Wheelock
Keyword(s):  
United States ◽  
Deposit Insurance ◽  
The United States ◽  
Bank Failure ◽  
Government Policies ◽  
Bank Failures ◽  
Economic Shocks ◽  
Deposit Insurance System ◽  
Branch Banking ◽  
New Evidence

This article examines the contribution of government policies to the high number of bank failures in the United States during the 1920s. In the state of Kansas, which had a system of voluntary deposit insurance and where branch banking was strictly prohibited, bank failure rates were highest in counties suffering the greatest agricultural distress and where deposit insurance system membership was highest. The evidence for Kansas illustrates how prohibitions on branch banking caused unit banks to be especially vulnerable to local economic shocks and suggests that deposit insurance caused more bank failures than would have occurred otherwise.

The Arts as a Polarized Issue and the Role of Political Trust in Promoting the Arts: Evidence From the United States

2021 ◽  
Vol 36 (1) ◽  
pp. 85-97
Author(s):  
Lim Jae Young ◽  
Woo Harin
Keyword(s):  
United States ◽  
General Social Survey ◽  
Strong Support ◽  
Political Trust ◽  
The United States ◽  
Social Survey ◽  
The Arts ◽  
Long Time ◽  
Moderating Role

The arts in the United States, for a long time received strong support from both sides of the political aisle. However, in recent years, the arts have been transformed into a partisan issue that pits conservatives against liberals. The article points to the importance of political trust as a means of helping conservatives overcome their ideological inclinations and support the arts. Scholars argue that political trust influences more strongly individuals who perceive a given policy to be one that imposes ideological risks for them compared with those without such risks. Focusing on the moderating role of political trust, the article examines whether political trust can help alleviate the conservatives’ hostility to the arts. Relying on the 2016 General Social Survey, the article finds that conservatives have no direct relationship with arts spending, but they will be more likely to support arts spending when this is contingent upon political trust.

scholarly journals The U.S.-China technological war through the prism of techno-nationalism

2021 ◽  
pp. 29-43
Author(s):  
I. Danilin
Keyword(s):  
United States ◽  
Global Economy ◽  
Technological Development ◽  
Digital Technologies ◽  
The United States ◽  
Market Situation ◽  
Key Factor ◽  
Rise Of China ◽  
The Rise Of China ◽  
The U.S

The “technological war” between the United States and China that started in 2017–2018 raises a number of questions about the future role of technological development as a factor in relations between superpowers. Analysis shows that for the United States this conflict is caused by changing balance of risks and benefits of the liberal model of globalization due to the rise of China`s power and growing geopolitical tensions between the two nations. In this context, emerging, especially digital, technologies appear to be a new battlefield between superpowers. Within the realist framework, actors consider emerging technologies as a key factor for strengthening their global postures. This, among other things, contributes to securitized technological agenda and strengthens its geopolitical dimension. Neo-technonationalism has become the platform that integrates different processes and goals into new U.S. policy. Although historically neo-technonationalism took its roots in Asia, the evolving market situation prompted the United States to rethink existing approaches and to upgrade the techno-nationalist dimension of its policy. Considering similar policies of China and the EU (i. e. the European digital sovereignty policy), this trend shapes new realities of technological “blocs”, the struggle for expansion of technological platforms, and technological conflicts. Taking into account prospective development needs of the global economy and future specification of mutual interest areas, as new digital technologies mature, the ground for normalizing the dialogue between the superpowers will emerge. However, at least in the U.S.–China case, this issue will be complicated by geopolitical contradictions that leave little room for any serious compromise.

The Institutions of Reflexivity

2011 ◽  
Author(s):  
Pierre Rosanvallon
Keyword(s):  
United States ◽  
Strong Support ◽  
Active Role ◽  
The United States ◽  
German Federal Republic ◽  
Constitutional Courts ◽  
The Public ◽  
Long Time ◽  
Constitutional Thought

This chapter turns to the increasingly active role of constitutional courts. These courts have established themselves—not without reservations and challenges—as an essential vector of the push for greater reflexivity. For a long time the United States, India, and the German Federal Republic stood out as exceptions because of their traditional emphasis on judicial review. Now, however, constitutional courts of one sort or another are at the heart of democratic government everywhere. Indeed, some scholars go so far as to discern a veritable “resurrection” of constitutional thought. It is noteworthy that these new constitutional courts on the whole receive strong support from the public, as numerous comparative surveys have shown, and they count among the most legitimate of democratic institutions.

Sign in / Sign up

Export Citation Format

Share Document