1. Require that all banks have insurance for accounts that are unable to be FDIC insured but are under $200,000.
2. Legislate that credit scores take into account a score determined by Homeland Security, under the premise that homeland knows more about a person (e.g. do they gamble in monaco off books a lot? are they involved in a radical movement and likely to lose or give their jobs? are they a likely to be arrested?). If the public needs more sell on this use the canned like "Do you really want your bank to lend money to terrorists?".
3. Drop FDIC insurance for any bank that operates outside of #2. #1 will force these banks to buy insurance, lowering their profitability. At this point, the system self-regulates and is hard to dismantle.
Score is still "go" vs. "no go". You can only shut off so many people because parallel "grey" finance market arises.
More finesse is needed. You can try banks to offer different deals to identical (finance-wise) people based on their HS score, but they're probably sue.
1. Require that all banks have insurance for accounts that are unable to be FDIC insured but are under $200,000.
2. Legislate that credit scores take into account a score determined by Homeland Security, under the premise that homeland knows more about a person (e.g. do they gamble in monaco off books a lot? are they involved in a radical movement and likely to lose or give their jobs? are they a likely to be arrested?). If the public needs more sell on this use the canned like "Do you really want your bank to lend money to terrorists?".
3. Drop FDIC insurance for any bank that operates outside of #2. #1 will force these banks to buy insurance, lowering their profitability. At this point, the system self-regulates and is hard to dismantle.