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Time Deposits, Dimensions, and Fraud

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Abstract

We stipulate, arguendo, that fractional-reserve-demand deposit banking is per se fraudulent. We ask whether or not time deposit banking can also be illicit, and answer in the positive, if there is a mismatch between the time dimensions of deposits and loans. To wit, if an intermediary borrows short and lends long.

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Authors and Affiliations

  1. Chase Distinguished Professor of International Business and Professor of Economics, Joseph A. Butt, S.J. College of Business, Loyola University New Orleans, 6363 St. Charles Avenue, Box 5, Miller Hall 318, New Orleans, LA, 70118-6143, U.S.A.

    William Barnett II

  2. Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics, Joseph A. Butt, S.J. College of Business, Loyola University New Orleans, 6363 St. Charles Avenue, Box 5, Miller Hall 318, New Orleans, LA, 70118-6143, U.S.A.

    Walter E. Block

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  1. William Barnett II
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Correspondence to Walter E. Block.

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Barnett, W., Block, W.E. Time Deposits, Dimensions, and Fraud. J Bus Ethics 88, 711–716 (2009). https://doi.org/10.1007/s10551-008-9976-9

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  • DOI: https://doi.org/10.1007/s10551-008-9976-9

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