William Isaac in American Banker on Lack of FDIC Intervention

William Isaac spoke to American Banker on the subject of the Federal Deposit Insurance Corporation, which has not acted on Congress’ March approval to intervene if the COVID-19 crisis leads to liquidity strains. While Mr. Isaac acknowledges the possibility of a liquidity problem developing, Mr. Isaac is not sure that regulators will need to use all the tools that they have been given.

From the article: “‘The banking system doesn’t have a liquidity problem like it normally would in an economic crisis where banks have made a bunch of bad loans,’ said William M. Isaac, former chairman of the FDIC and co-founder of the Isaac-Milstein Group. ‘This is a crisis that started in hospitals and in nursing homes.'”

Read the full article here: https://www.americanbanker.com/news/fdic-tool-to-prevent-bank-runs-goes-unused-vs-coronavirus