"Preventing Another Banking Crisis: Lessons from the Past and Present"

Financial regulation experts are proposing two big ideas to prevent another banking crisis. The first idea is to explicitly insure all deposits, which could prevent a run on a troubled bank and help preserve small and midsize banks. The second idea is to create a new type of low-risk bank, where deposits at "core banks" would be insured by the government, but these lenders would be allowed to participate only in low-risk businesses. Wholesale banks would draw funding from private investors but wouldn't be protected by the government.