"Banking laws backfire, too. The savings and loan crises developed because in the early 1980s Washington increased deposit insurance to $100,000 at no cost to individual savers. This encouraged them to put their money wherever it would earn the highest interest, regardless of how unsound a bank’s lending policies might be. The result, of course, was the debacle whose costs soared into the hundreds of billions of dollars. Such costs should have been borne by those who chose to take the risks. Instead they were imposed on innocent taxpayers who never put any money in an S&L."
Why Laws Backfire, The Freeman, p. 546, August 1996