Deregulation of Banks

Boy! Talk about the classic “straw man”! Robert Kuttner’s article “Alternative to FDIC Is Panic in the Streets” (Commentary, Jan. 9) is the real thing.

The alternative to FDIC bank insurance is not “no” insurance, and therefore, panic in the streets. The alternative is non-government (non-taxpayer)-backed, private bank insurance.

When banks have to pay insurance premiums related to their management style, loan risks, financial health, etc., then they’ll be more responsible. Especially if the premiums go to another private business which has a real interest in dealing with only responsible banks.

But no insurance? I’ve never heard of anyone suggesting the elimination of all bank insurance. That’s a bunch of straw!

STEPHEN J. MOORE, Irvine