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Deposit Fund's Adequacy Debated As Failures Loom

Publication Date: 
July 30, 2008
American Banker
Joe Adler

Professor Kenneth E. Scott is quoted in an American Banker story about the FDIC's reserves in view of the recent collapse of three banks:

"If I were there, I think I would be a little nervous, and I would be running stress tests," said Kenneth Scott, an emeritus professor at Stanford Law School.


Prof. Scott agreed, noting again that the fund is backed up by other government facilities.

"The fund itself is not an adequate-to-all-circumstances kind of operation," he said. "It's sort of your first line of defense, so to speak, and then you can back it up by making additional assessments."