Question: Why did the fixed-rate deposit insurance system fail to induce insured and uninsured depositors to impose discipline on risky DIs in the United States in

Why did the fixed-rate deposit insurance system fail to induce insured and uninsured depositors to impose discipline on risky DIs in the United States in the 1980s?
a. How is it possible to structure deposits in a DI to reduce the effects of the insured ceiling?
b. What are brokered deposits? Why are brokered deposits considered more risky than non brokered deposits by DI regulators?
c. What trade-offs were weighed in the decision to leave the deposit insurance ceiling at $100,000 in 2005 and then increase the ceiling to $250,000?

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