Deposit insurance reform remains controversial. One need look no further than the Sept. 2 issue of American Banker ("Pare 'Too Big to Fail' Policy, Minneapolis Fed Chief Suggests") to find examples of the emotion the topic evokes.

The article reported on a draft paper on deposit insurance reform by Gary Stern, president of the Federal Reserve Bank of Minneapolis. Mr. Stern is one of several bright and thoughtful leaders in the Federal Reserve banks. He believes the marketplace should be involved to a greater extent in regulating financial institutions.

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