Some Concerns about Deposit Insurance for a Less Regulated Financial System

Passage of the Garn-St. Germain bill recognized some of the changes that have occurred in the financial system for more than a decade* The bill permitted older institutions to respond more directly to competition from newer financial institutions* Additional changes are likely to occur in the future» either by additional legislation or in its absence* Without a determined --and mistaken effort to prevent these changes by new i legislation, it seems likely that the restrictions in the McFadden Act, the Bank Holding Company Act, Glass-Steagall, and the Saving and Loan Holding Company Act will be modified in the next decade either by legislation or by innovation that circumvents existing laws.