It seems miraculous, but on Tuesday when Senator Barack Obama called for an increase in federal deposit insurance deposit levels, no one disagreed with him. In fact the other major party political candidate Senator John McCain reiterated the need for an increase, even crediting Obama for the idea, as did President Bush. In the late afternoon Federal Deposit Insurance Corporation (FDIC) chairperson Sheila Bair also called for the increase.
The proposal would raise the level of insurance from $100,000 per depositor to $250,000. The latter amount is also the level at which the government recently agreed to insure money market accounts following runs on those funds.
The last increase in FDIC insurance limits was 28 years ago when the amount was raised from $40,000 to the current $100,000 to adjust for inflation. Before that accounts were insured for $15,000.
Source: Mortgage News Daily
dated Wednesday, October 1, 2008
To read more, go to: http://www.mortgagenewsdaily.com/10012008_fdic_increase.asp
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