U.S. Studies Ways To Insure All Bank Deposits if Crisis Grows
by: Saleha Mohsin; Sridhar Natarajan
U.S. officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks to head off a potential financial crisis. Treasury Department staff are reviewing whether federal regulators have enough emergency authority to temporarily insure deposits greater than the current $250,000 cap on most accounts without formal consent from Congress, say insiders. Authorities don’t yet view such a move as necessary, especially after regulators took steps this month to help banks keep up with any demands for withdrawals, the people added. Still, they are developing a strategy out of due diligence in case the situation worsens.
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