Gerald P. O'driscoll, Jr.: Bank failures: The deposit insurance connection contemporary policy issues Vol. VI, NO. 2, April 1988.

Abstract

The author articulated the views of Friedman and Schwartz who are unfavourably disposed to general regulation of the banking system but accepts the existence of deposit insurance; which in their view "was the most important structural change in the banking system to result from the 1933 panic". In a historical analysis into the problems that led to banking failure in the United States, and the resultant establishment of the Federal Deposit Insurance Corporation (FDIC), with other binding regulations on commercial banks, the author agrees with Friedman and Schwartz submission that annual bank failure declined from triple-digit to doubledigit to single-digit.