Published on February 21, 2022 by Morgan Black  
Stone Anna Leigh
Anna-Leigh Stone, assistant professor of finance, has had new research selected for publication. Her article, “Dodd-Frank and Unlimited Deposit Insurance,” is forthcoming in Finance Research Letters.
 
As an entry in the letters journal, her article was limited to 2,500 words. It is the first paper to examine the unlimited deposit insurance on noninterest-bearing transaction accounts (NIBTAs) provided by Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a federal law put in place in July 2010 that overhauled financial regulation following the Great Recession.  
 
During Dodd-Frank, banks had a smaller ratio of NIBTAs compared to later periods without the unlimited insurance but have larger deposit flows in NIBTAs over the $250,000 Federal Deposit Insurance Corporation (FDIC) limit. Stone’s research results suggest that depositors took advantage of the unlimited insurance, but that banks were not harmed by drawdowns when the insurance expired. In addition, Stone found that emergency deposit insurance might be a complement to FDIC insurance during recessionary times.
 
Stone said, “This was my first time writing an article for a letters journal and it was a great learning experience in writing concisely. It has taught me that a paper does not have to be a full-length article to share valuable results.”
 
In fall 2021, her article “Double the Insurance, Double the Funds?” was selected for publication in the Journal of Banking & Finance, one of the nation’s top banking journals. In it, she presents more than six years of research regarding the workings of private insurance organizations in the state of Massachusetts, the Depositors Insurance Fund and Share Insurance Fund.
 
“Dodd-Frank and Unlimited Deposit Insurance” was part of a larger essay that was in her dissertation on unlimited deposit insurance. This larger essay was the paper that she presented at a conference when someone approached her about doing research on the Depositors Insurance Fund and Share Insurance Fund.
 
She said, “In a way, this paper is part of the reason that ‘Double the Insurance, Double the Funds?’ even exists. Research is funny in that way.”
 
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