The nature of the moral hazard problem

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Explain carefully, but concisely, the nature of the moral hazard problem that results from the federal deposit insurance system, explaining the roles played by both depositors and managers. Explain briefly how the problem was affected during the 1980s as S&Ls' capital accounts were depleted. Also note one regulation intended to reduce the moral hazard problem and how it may reduce the problem.

Reference no: EM131161156

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