Net-Worth Certificate

Net-Worth Certificate
An instrument used by the FDIC starting in 1982 as part of an effort to save failing banks and thrifts by providing capital. When deposit-rate restrictions that had existed for decades were lifted, banks and thrifts found themselves having to pay out more in interest on deposits than they were earning from their long-term investments, such as 30-year fixed-rate mortgages and government bonds. Net-worth certificates gave the banks and thrifts time to resolve their problems.

During the 2008 financial crisis, some people, including former FDIC chairman William Isaac, suggested reintroducing net-worth certificates to rescue struggling banks while using minimal government intervention.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • List of Chinese by net worth — The following is a Forbes list of Chinese billionaires is based on an annual assessment of wealth and assets compiled and published by Forbes magazine on March 10, 2011.[1] In 2011 China has 115 billionaires which ranks second after United States …   Wikipedia

  • China Compulsory Certificate — The China Compulsory Certificate mark, commonly known as CCC Mark, is a compulsory safety mark for many products sold on the Chinese market. It became effective on May 1, 2002. It is the result of the integration of China s two old compulsory… …   Wikipedia

  • ЗАКОН ГАРНА-СЕН-ЖЕРМЕНА О ДЕПОЗИТНЫХ УЧРЕЖДЕНИЯХ 1982 г. — GARN ST GERMAIN DEPOSITORY INSTITUTIONS ACT OF 1982Закон разрешил ведение счетов ден. рынка; положил конец практике использования процентного дифференциала, дававшего преимущество сберегательным кассам; оказал поддержку ссудосберегательным… …   Энциклопедия банковского дела и финансов

  • Federal Reserve System — FRB and FED redirect here. For other uses, see FRB (disambiguation) and FED (disambiguation). Federal Reserve System …   Wikipedia

  • Donald Trump — This article is about Donald Trump, Sr. For his son, see Donald Trump, Jr. Donald Trump …   Wikipedia

  • Fractional reserve banking — Banking A series on Financial services …   Wikipedia

  • Philippine general election, 2004 — Infobox Election election name = Philippine general election, 2004 country = Philippines type = presidential ongoing = no previous election = Philippine general election, 2001 previous year = 2001 next election = Philippine general election, 2007 …   Wikipedia

  • Depository participant — In India, a Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between …   Wikipedia

  • value — The utility of an object in satisfying, directly or indirectly, the needs or desires of human beings, called by economists value in use, or its worth consisting in the power of purchasing other objects, called value in exchange. Joint Highway… …   Black's law dictionary

  • Bank — For other uses, see Bank (disambiguation). Banker and Bankers redirect here. For other uses, see Banker (disambiguation). Banking …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”