Why Over-Insured Depositors Are Banking's Moral Hazard | Free Investing

Why Over-Insured Depositors Are Banking's Moral Hazard

Submitted by Free Investing on Wed, 03/10/2010 - 01:09

Value Expectations submits: By John Tamny, Toreador Research and Trading (Guest Contributor) A popular belief among the economic commentariat today is that the mere existence of the Federal Deposit Insurance Corp. represents "moral hazard." With bank deposits insured, the common thought is that bank executives feel more comfortable taking massive risks because their losses will be covered by the taxpayer.Complete Story »

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