An article that described some of the options being considered for raising funds at the Federal Deposit Insurance Corp. {Business, Jan. 29} prompts some additional thoughts. The fundamental principle, as I see it, is to attack the problem from both sides: increase the amount of funds available to the FDIC and decrease the FDIC's need for cash. The following are suggestions for the latter half of the equation.

1) Allow FDIC-insured banks to offer "uninsured accounts." Essentially, these accounts would be free of standard banking regulations, and the FDIC would be free of any obligation for these funds. This would help improve the competitiveness of banks in the consumer investment market, and it would allow banks to continue funding business ventures that are too risky for the government to insure.

2) Change "insured accounts" to tax-free, low-interest, time-deposit accounts (like the old savings account), and regulate the investment of these funds so that they can only be invested in other "safe" investments. Making these accounts tax-free and insured would attract investors so that banks would continue to have a steady source of inexpensive funds to finance their basic operations and the government would be sure of continued low-interest financing for home buyers and small businesses.

These suggestions might help make the banking industry stronger, thereby reducing the number of failures and making each failure less costly to taxpayers.