Head Of Fdic's Insurance Division To Discuss Deposit Insurance Reforms Dec. 5 At Colorado State
Monday, November 24, 1997
FORT COLLINS--The director of the Federal Deposit Insurance
Corporation's division of insurance will visit Colorado State
University Dec. 5 to outline his agency's proposed changes to
deposit insurance regulations.
Arthur J. Murton will address students, entrepreneurs and
the banking community from
3-4:30 p.m. in Room 100 Eddy Building. The presentation, titled
"Deposit Insurance Reform: A View from the FDIC," is free and
open to the public.
The talk is sponsored by the department of economics,
College of Business and the department of finance and real
estate.
Murton, a long-time employee at the FDIC, was selected in
1995 to head the agency's newly-created Division of Insurance.
The division analyzes regional and national economic trends with
the goal of avoiding the costly bailout of bank and savings
thrift failures that took place in the early 1990s.
Murton and his agency are directly involved in proposals to
reform the federal deposit insurance program to better reflect
the current organization of banks and thrifts nationwide. Created
in 1933 to stem instability in banking and to protect deposits
made by account holders, proposals for reform could include
developing a way to expand the matrix the FDIC uses to set rates
for bank and savings thrifts deposit insurance premiums.
According to an article in American Banker magazine,
although the deposit insurance premium rates are supposed to be
based on how much risk a bank or thrift poses, more than 95
percent of all banks and 90 percent of all savings thrifts
qualify for the lowest rate, which is zero.
Ronnie Phillips, economics professor at Colorado State and
the presentation's organizer, said Murton's talk will offer
participants a glimpse into the FDIC's proposals for deposit
insurance reform that the agency will unveil in January.
"Reforms to the FDIC's federal deposit insurance regulations
are the dominant topic in the banking industry," Phillips said.
"This presentation will shed some light on what the FDIC wants to
do to keep a banking crisis from happening in the United States
again."
For information about the presentation or proposed changes
to deposit insurance regulations, call Phillips at (970) 491-6079
or Rick Johnson, professor of finance and real estate, at (970)
491-5564.
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