Makes you wonder….

…why this hasn't been the policy all along. Via Matt Yglesias...

The FDIC, which collects fees from all banks to repay depositors in failed banks, is considering a plan to impose higher fees on banks with compensation practices that the agency regards as encouraging reckless pursuit of short-term profits without sufficient regard for the risk of long-term losses.

Habitually reckless drivers pay higher rates for auto insurance. Similarly, risky hobbies or reckless habits can increase your life insurance costs. Why in the word wouldn't reckless bank practices make coverage by the Federal Deposit Insurance Corporation more expensive?

Do it.