The Impact of Federal Deposit Insurance on Savings and Loan Failures: Comment

1995 ◽  
Vol 62 (1) ◽  
pp. 253 ◽  
Author(s):  
Ira S. Saltz
Keyword(s):  
Deposit Insurance ◽  
Savings And Loan ◽  
Federal Deposit Insurance ◽  
The Impact

scholarly journals Examining the Relationship between Land Values and Credit Availability

2021 ◽  
pp. 1-20
Author(s):  
Ana Claudia Sant’Anna ◽  
Cortney Cowley ◽  
Ani L. Katchova
Keyword(s):  
Fixed Effects ◽  
Deposit Insurance ◽  
Land Values ◽  
County Level ◽  
Macroeconomic Factors ◽  
Credit Availability ◽  
Regulatory Changes ◽  
Panel Fixed Effects ◽  
Federal Deposit Insurance ◽  
The Impact

Abstract Increased credit availability facilitates land acquisition, but higher land values also hinder it. We investigate the impact of credit availability on land values, after regulatory changes in the lending system. We build an index of increased credit availability using Federal Reserve and Federal Deposit Insurance Corporation data. County-level panel fixed effects estimations are performed controlling for land value determinants, credit availability, and county-level macroeconomic factors. We find that estimating the effects of credit availability separately masks its total effect. Results show a 0.1 change in the index for increased credit availability is associated with 1.64–1.96% increase in land values.

Symposium on Federal Deposit Insurance for S&L Institutions

1989 ◽  
Vol 3 (4) ◽  
pp. 3-9 ◽  
Author(s):  
Dwight M Jaffee
Keyword(s):  
Great Depression ◽  
Commercial Bank ◽  
Deposit Insurance ◽  
Bush Administration ◽  
Bank Runs ◽  
Future Prospects ◽  
The Great Depression ◽  
Bank Deposits ◽  
Savings And Loan ◽  
Federal Deposit Insurance

Federal deposit insurance was introduced to eliminate the bank runs of the Great Depression: the FDIC (Federal Deposit Insurance Corporation) was created in 1933 to insure commercial bank deposits, and the FSLIC (Federal Savings and Loan Insurance Corporation) was created in 1934 to insure savings and loan association (S&L) deposits. Following a decade of neglect, the Bush administration and Congress moved early in 1989 to resolve the most serious problems yet to confront federal insurance of U.S. bank deposits. How did S&L losses expand so rapidly and unexpectedly? How should FSLIC be redesigned to avoid a reoccurance? Who is going to pay for the existing FSLIC losses? What are the future prospects for the S&L industry?

A case study of XBRL implementation and development at the Federal Deposit Insurance Corporation (FDIC)

2020 ◽  
Vol 17 (2) ◽  
pp. 263-291
Author(s):  
Rania Mousa ◽  
Robert Pinsker
Keyword(s):  
Deposit Insurance ◽  
New Technologies ◽  
Public Information ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Federal Deposit Insurance ◽  
The Impact ◽  
Federal Deposit Insurance Corporation

Purpose The purpose of this paper is to examine the implementation and development of eXtensible Business Reporting Language (XBRL) at the Federal Deposit Insurance Corporation (FDIC). The investigation seeks to gauge the roles and experiences of the FDIC and its main stakeholders to determine their engagement in XBRL diffusion within their organizations. Design/methodology/approach This is an qualitative research approach that is driven by the use of an in-depth case study and supported by the use of semi-structured interviews. Findings The findings showcase the role played by the FDIC as the first US regulatory authority that implemented and developed Inline XBRL. In addition, the use of diffusion of innovation theory provides better understanding of each stakeholder’s issues, benefits and challenges based on their experience. Research limitations/implications The research does not examine the institutionalization of XBRL at the FDIC or its stakeholders. Therefore, future research could incorporate a different research design to capture the impact of the pressure resulting from the regulatory mandate. Practical implications The research offers practical insights into public information technology managers and policymakers at global government agencies which are either non-adopters of XBRL technology or current adopters and consider transitioning into Inline XBRL. Global stakeholders could learn from the US experience and develop better understanding of Inline XBRL applications and functionalities. Originality/value The originality of this research is driven by the FDIC’s experience as the first regulatory developer of Inline XBRL. As such, the case study is a best practice to future and current adopters who often navigate the nuisance of implementing new technologies and/or developing existing ones.

WaMu's Option-ARM Strategy

2014 ◽  
Vol 29 (4) ◽  
pp. 557-575
Author(s):  
Robert M. Bowen ◽  
S. Jane Jollineau ◽  
Barbara A. Lougee
Keyword(s):  
Business Strategy ◽  
Deposit Insurance ◽  
Financial Statement ◽  
Financial Analyst ◽  
The Great Depression ◽  
Savings And Loan ◽  
Federal Deposit Insurance ◽  
Loan Losses

ABSTRACT At the end of 2007, Washington Mutual, Inc. (generally known as “WaMu”) was the largest savings and loan bank in the U.S., based on assets ($328 billion) and revenue ($25.5 billion). Less than nine months later, WaMu was seized by federal regulators and sold to JPMorgan Chase for $1.9 billion in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC). During the worst recession since the Great Depression, WaMu became the largest U.S. bank failure in history. This case illustrates how a financial institution's business strategy affects risk and how these characteristics are revealed in the financial statements. Students assume the role of a financial analyst examining WaMu's 2007 10-K after its release in March 2008. In particular, they evaluate the quality of WaMu's loans and the adequacy of WaMu's estimates for loan losses, one of the most important discretionary accruals for financial institutions. Students gain insights into the consequences of WaMu's business strategy to emphasize high-margin loan products by comparing WaMu to (1) the relatively conservative Wells Fargo Bank and (2) the average large FDIC bank. This case has been used successfully in graduate-level financial statement analysis courses.

The Reform of Federal Deposit Insurance

1989 ◽  
Vol 3 (4) ◽  
pp. 11-29 ◽  
Author(s):  
Lawrence J White
Keyword(s):  
Commercial Banks ◽  
Deposit Insurance ◽  
Current System ◽  
The United States ◽  
Government Agency ◽  
Insurance Fund ◽  
Financial Condition ◽  
Savings And Loan ◽  
Federal Deposit Insurance ◽  
The U.S

In early 1989, the system of deposit insurance in the United States was in crisis. The Federal Savings and Loan Insurance Corporation (FSLIC), the U.S. government agency that provided deposit insurance for savings and loan (thrift) institutions, had sustained massive losses from the insolvencies of hundreds of thrifts. Tens of billions of dollars of general Treasury revenues will be necessary to make good the losses in the insurance fund, which had previously been financed solely through premiums assessed on thrifts' deposits. The Federal Deposit Insurance Corporation (FDIC), which provides similar insurance for deposits in commercial banks, has sustained much smaller losses but is considered to be in poor enough financial condition that its premium assessments will increase substantially. This article will review the current system of deposit insurance and advocate a set of necessary reforms.

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