FDICIA after five years: a review and evaluation

At yearend 1991, Congress enacted fundamental deposit insurance reform for banks and thrifts in the FDIC Improvement Act (FDICIA). This reform followed the failure of more than 2,000 depository institutions in the 1980s. Many of these failed because of the incentive incompatibility of the structure of federal government-provided deposit insurance, which encouraged moral hazard behavior by banks and poor agent behavior by regulators. Insurance was put on a more incentive compatible basis by providing for a graduated series of sanctions that mimic market discipline and first may and then must be applied by the regulators on floundering the banks. This article reviews these changes and evaluates the early results.Federal Deposit Insurance Corporation Improvement Act of 1991

Deposit insurance reform in the FDIC Improvement Act: the experience to date

In 1991, the U.S. adopted fundamental deposit insurance reform in the FDIC Improvement Act. This article reveals why such reform was necessary in light of the severe banking crisis of the 1980s and analyzes its success to date.Federal Deposit Insurance Corporation Improvement Act of 1991

Consumer credit information systems: A critical review of the literature. Too little attention paid by lawyers?

This paper reviews the existing literature on consumer credit reporting, the most extensively used instrument to overcome information asymmetry and adverse selection problems in credit markets. Despite the copious literature in economics and some research in regulatory policy, the legal community has paid almost no attention to the legal framework of consumer credit information systems, especially within the context of the European Union. Studies on the topic, however, seem particularly relevant in view of the establishment of a single market for consumer credit. This article ultimately calls for further legal research to address consumer protection concerns and inform future legislation

A Research Note on the Relationship between Regulation and Audit Firm Size on Audit Fees

This study represents an initial attempt to examine some specific factors that might lead to large firms' economies of scale. Multiple regression analysis is used to test hypotheses concerning scale opportunities conferred on large CPA firms in dealing with regulatory complexity faced by the client. An analysis of interaction between audit firm size and variables measuring client regulatory complexity shows that audit fees are lower for all firms in regulated industries compared to nonregulated industries—the difference being much greater, however, for Big Eight (now Big Six) firms, and audit fees charged by Big Eight firms are much lower when the auditor is involved with client security registrations. This relationship does not hold true for non-Big Eight firms involved with client registration statements. Based on these results, it appears that client regulatory complexity confers greater scale opportunities to larger audit firms compared to smaller ones.Yeshttps://us.sagepub.com/en-us/nam/manuscript-submission-guideline

Accounting, boundary-making and organizational permeability

Financial accounting necessarily depends on an entity assumption which shapes the way it recognises and accounts for organizational exchanges with social environments. It thereby constructs boundaries and frames permeability in terms of what counts, is accounted for, as being inside and outside of the organization. Yet there are different possible entity concepts reflecting different values about the relationship between the organizational entity and society. This essay considers four problem areas in which these values and the entity-society relationship are at stake within financial accounting: the problem of control within group accounting; accounting for externalities; the economization of public organizations; and the construction of organizational actorhood. These four problematics suggest that financial accounting, its boundary determining assumptions and the forms of organizational permeability it permits, are deeply intertwined and subject to continuous pressure for change