A couple of years back in this blog, we noted with more than a dash of skepticism that the FDIC was trying to make it easier for new banks to test the financial waters. After all, the actions by then - FDIC Chairman Martin Gruenberg to jump start the creation of new institutions – slashing the period of microscopic regulatory scrutiny for new bank ventures from eight months to … [Read more...]
Study Sacks FDIC Fears on Brokered Deposits
Subprime mortgages, greedy big banks and brokered deposits were at the root of the 2007 financial crisis, or so goes the case of federal regulators who helped saddle institutions big and small with Dodd- Frank. But a recent study by a former bank regulator and respected scholar, James R. Barth and a doctoral student Yanfei Sun, both from my alma mater, Auburn University, has … [Read more...]