Tuesday, September 30, 2008

FDIC urges temporary hike in insured deposit limit: Financial News - Yahoo! Finance

FDIC urges temporary hike in insured deposit limit: Financial News - Yahoo! Finance:
"The agency that protects U.S. bank deposits is asking Congress for temporary authority to boost deposit insurance limits as the government works to contain the financial crisis.

Federal Deposit Insurance Corp. Chairwoman Sheila Bair on Tuesday asked for unspecified authority to raise insurance limits on the very day that both presidential candidates recommended the move as a way to help prospects for the failed $700 billion financial bailout bill."
From Bloomberg:
"The FDIC currently provides $100,000 of insurance for individual bank deposits. The memo didn't specify what new level was being requested by the agency."


Tony Weaver said...

Temporary hike? Not sure much of anything is temporary with the feds.

Fred said...

Why should an increased coverage level be temporary? Up the limit to $1,000,000 and see what a calming effect that has. Too many people are fixated on running up against that $100,000 limit. They move money around just because of the limit.

Tony Weaver said...

A good rationalle by Fred. You can have multiple accounts at multiple banks and if done properly they can all be FDIC insured. Why not have it all in one account and be done with all the extra paperwork that comes with 10 accounts each containing a 100K. How high should it go? This begs the question of should the gov't be insuring the entire wealth of all American deposits.