Back to 1980*

The FDIC Proposes is suggesting interest rate caps on banks that are not "Well Capitalized" under accounting rules:

The FDIC recommended banks be limited in tapping higher- cost sources of funds, such as brokered deposits, and be barred from paying rates that exceed a national average plus 75 basis points. The agency also said premiums paid to insure deposits should be based on risks faced by the banks that fail to meet regulatory requirements.

The bank industry lobbyists are screaming, "Nationalization," of course, but that's what they do whenever there is an attempt to regulate.

It really is amazing just how much every rollback of New Deal regulations has resulted in disaster.

^*That's when statutory limits on interest rates for deposit accounts were repealed.^†
†That was when Jimmy Carter was President. The regulatory origins of this crisis, as well as the Savings and Loan debacle, start with him^‡
‡Yet another reason I hate "Saint Jimmy."