How would one treat small banks that are parts of large holding companies?
35. For example, phase-in rules could allow banks that cross the threshold into “large bank” status a grace period before they were required to float subordinated debt securities. 36. See Table B-1.3 in the Options Paper, page 56. 37. See Table B-2.1 in the Options Paper, page 57. 38. Only 9 at the end of 1999, according to the Options Paper, Table B-2.1. 39. Once again, this should not be taken for granted. Attempts at establishing new securities markets sometimes fail for lack of investor interest, or for other reasons. If the FDIC notes were not actively traded, their role in “price discovery” would be limited. 40. By contrast, there are often lower limits on these types of insurance. However, some types of insurance, e.g., life insurance, may have upper limits on coverage. 41. We say “most” because any insurance policy entails a moral hazard. 42. Accounts without Social Security numbers are a problem in any case. 43. In reality, the share of wealth held in bank accounts has been fa
