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US Studies Ways to Insure All Bank Deposits If Crisis Grows

  • Authorities don’t yet see expanding FDIC coverage as necessary
  • Still, they’re studying legal framework using emergency powers
Bloomberg business news
Sridhar Natarajan has more on “Bloomberg Surveillance.”Source: Bloomberg
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US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed 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 a deeply divided Congress, according to people with knowledge of the talks.