Financial Regulation
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Deposit Insurance Boundary
The legal line separating insured deposits from uninsured claims, contingent obligations, investment products, and other bank liabilities.
Why It Matters
The boundary affects depositor confidence, moral hazard, funding costs, product design, and the public exposure created when economically similar claims receive different guarantees.
Selected Literature
A short list of directly relevant archive entries.
1983
Introductory
Bank Runs, Deposit Insurance, and Liquidity
Douglas W. Diamond and Philip H. Dybvig
Journal of Political Economy
1998
Advanced
2008
Advanced
Related Cases
1986
Financial Law
FDIC v. Philadelphia Gear Corp.
476 U.S. 426 (1986)
Whether an unfunded standby letter of credit backed by a contingent promissory note creates an insured deposit.
1996
Financial Law
United States v. Winstar Corp.
518 U.S. 839 (1996)
Government contractual commitments made during thrift supervisory mergers and later regulatory change.