Time Deposits, Dimensions and Fraud
Walter E. Block
Loyola University New Orleans - Joseph A. Butt, S.J. College of Business
William Barnett II
Loyola University New Orleans
July 19, 2011
Journal of Business Ethics, Vol. 88, 2009
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.
Number of Pages in PDF File: 6Accepted Paper Series
Date posted: July 22, 2011
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