Kroszner and Strahan.

• Position: Federal Deposit Insurance Act - Brief Article

Kroszner and Strahan provide a positive political economy analysis of the most important revision of the U.S. supervision and regulation system during the last two decades, the 1991 Federal Deposit Insurance Corporation Improvement Act (FDJGIA). They analyze the impact of private interest groups and political--institutional factors on the voting patterns on amendments to FDICIA and its final passage in order to determine the importance of different types of obstacles to welfare-enhancing reforms. They find that both private interest group and political-institutional factors play significant roles; a "divide and conquer" strategy appears to be effective in bringing about legislative change.

A major revision of international bank capital regulations...