ABA Banking Journal - January 2008 - (Page 15) The result of such a [deposit] guaranty would, in my opinion, tend to put a premium on the ‘popular’ and ‘obliging’ banker, as against the careful and judicious banker….” Pretty strong stuff for a first issue. The following month, the subject came up again. In this case the Hon. Leslie M. Shaw of New York, former Secretary of the Treasury, opined vigorously against the notion of a government guarantee. However, he did write that it would be feasible for a guarantee company of large capitalization. It would be nearly 30 years before the exigencies of the Great Depression overcame the resistance to deposit guarantees. Now, of course, FDIC insurance is a foundation block of U.S. banking. Arguments about it have moved away from moral hazard (which has proven to be a real issue at times) to what the proper premium assessment should be, as outlined by the FDIC Reform Act of 2005. It is also interesting to read the 1908 comments—particularly those of Laughlin—in light of today’s subprime mortgage crisis. —Bill Streeter “C Notes”: Tidbits from BJ’s Issue No. 1 The ABA had a Savings Bank Section in 1908, which “showed a steady increase in membership.” Fast forward 100 years and we come full circle with the just-completed merger of the ABA and America’s Community Bankers, the successor organization to several savings institution groups. Plans were in place for the ABA’s Annual Convention in October at the Brown Palace Hotel in Denver. The “literary” part of the program was to include an address from the president of Princeton University, one Woodrow Wilson. A brief note reported that the Federal Legislative Committee “have considered some ninety different bills which they have in their possession…pertaining to banking interests.” Today’s count? Don’t ask. A regular item in the early years was a list of visitors to the ABA’s offices which “being so centrally located in the financial district—corner Nassau and Pine Streets—make a very convenient place for members and their friends to meet when in New York.” The ABA didn’t move to Washington until 1971. Members could make use of the association’s stenographers and could have their mail and telegrams sent in care of the office. “The Association telephone is also at their service.” ☞ ☞ ☞ ☞ www.ababj.com/subscribe.html ABA BANKING JOURNAL/JANUARY 2008 15 http://www.monarchpg.com http://www.monarchpg.com http://www.ababj.com/subscribe.html
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.