The Crash of

An exaggeration? Perhaps, but the current state of our banking system is anything but reassuring. In 1986 over 140 banks failed. Last year more than 180 closed their doors. In comparison, the average number of bank closings between 1940 and 1970 was less than ten per year.

Mr. Glasner, who has just joined the Federal Trade Commission as a staff economist, is the author of a forthcoming book on financial deregulation and monetary reform (Cambridge University Press), from which this article is adapted. The views expressed do not reflect the official position of the FTC.

DG

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David Glasner

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An exaggeration? Perhaps, but the current state of our banking system is anything but reassuring. In 1986 over 140 banks failed. Last year more than 180 closed their doors. In comparison, the average number of bank closings between 1940 and 1970 was less than ten per year.

Mr. Glasner, who has just joined the Federal Trade Commission as a staff economist, is the author of a forthcoming book on financial deregulation and monetary reform (Cambridge University Press), from which this article is adapted. The views expressed do not reflect the official position of the FTC.