Federal Deposit Insurance Corp. Chairman Ricki Helfer recently criticized a proposal developed for the Bank Administration Institute by McKinsey & Co. to privatize deposit insurance.

While the chairman made a good argument for government rather than private-sector operation of the existing deposit insurance system, I believe the wrong question is being debated.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.