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FDIC Wants to Boost Deposit Insurance Limit: Source

Posted By admin On October 1, 2008 @ 3:22 am In Money Watch | Comments Disabled

Reuters [1]
Wednesday, Oct 1, 2008

The chairman of the House Financial Services Committee has told lawmakers that a federal bank regulator will seek authority to increase the deposit insurance limit to a level above its current $100,000, said a source familiar with the chairman’s thinking.

Representative Barney Frank, a Massachusetts Democrat, has told lawmakers of his committee that Sheila Bair, chairman of the Federal Deposit Insurance Corporation, will soon request the authority to boost the level of insured deposits, the source said.

Presidential nominees Barack Obama and John McCain both proposed an increase in federal deposit insurance to $250,000 from $100,000 as a way to broaden support for the bank asset bailout bill rejected on Monday by the House of Representatives.

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Those efforts come a day after the House rejected a $700 billion Wall Street bailout, sending stock markets plummeting.

The FDIC insures up to $100,000 per deposit account and up to $250,000 per retirement account at insured banks. The agency’s insurance fund stood at about $45.2 billion at the end of the second quarter and has taken a hit from bank failures in recent months.

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URL to article: http://www.prisonplanet.com/fdic-wants-to-boost-deposit-insurance-limit-source.html

URLs in this post:

[1] Reuters: http://www.cnbc.com/id/26959195

[2] FDIC Hits Record “Default” Level As Deposit Insurance Fund Plunges By $12.7 Billion To NEGATIVE 20.9 Billion: http://www.prisonplanet.com/fdic-hits-record-default-level-as-deposit-insurance-fund-plunges-by-12-7-billion-to-negative-20-9-billion.html

[3] FDIC’s Bair Says Insurance Fund Could Be Insolvent This Year: http://www.prisonplanet.com/fdic%e2%80%99s-bair-says-insurance-fund-could-be-insolvent-this-year.html

[4] Senate moves to allow FDIC to borrow $500 Billion: http://www.prisonplanet.com/senate-moves-to-allow-fdic-to-borrow-500-billion.html

[5] FDIC Key to Stop Banking Collapse: http://www.prisonplanet.com/fdic-key-to-stop-banking-collapse.html

[6] U.S. problem bank list hits 416, insurance fund falls: http://www.prisonplanet.com/u-s-problem-bank-list-hits-416-insurance-fund-falls.html

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