The rush of a number of insurance companies to seek approval to acquire a bank or thrift institution suggests a number of things: In uncertain times, a well-run bank or thrift can provide a relatively stable source of liquidity under the cover of federal deposit insurance, the opportunity to borrow from the Federal Reserve window for short-term needs, and the opportunity to take advantage of specially designed stabilization initiatives offered by the U.S. Government. It may even provide some advance guidance as how a federal regulatory scheme for insurance might impact current insurance company activities. However, as recent events have indicated, failure to consider and plan in advance for problem areas can have potentially serious consequences.

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