FDIC Recommends Overhauling US Insurance Deposit System
May 1, 2023 11:43AM PDT
FILE – The Federal Deposit Insurance Corporation (FDIC) seal is shown outside its headquarters, March 14, 2023, in Washington. On Monday, May 1, the FDIC recommended that the U.S. rethink its decades-old policy of insuring up to $250,000 in bank deposits and replace it with an overhaul that would allow regulators to cover higher amounts on a “targeted” basis. (AP Photo/Manuel Balce Ceneta, File)
NEW YORK (AP) — The Federal Deposit Insurance Corp. is recommending the U.S. rethink its decades-old policy of insuring only as much as $250,000 in bank deposits.
In a report released Monday, the FDIC suggests insuring business accounts at higher levels than it has previously.
The proposed change would require congressional approval.
It appears to openly acknowledge that the FDIC is looking for ways to calm both depositors and markets as the organization contends with the third U.S. bank failure this year.
First Republic Bank became the second largest failure in history Monday when regulators seized it and JP Morgan Chase stepped up as a buyer.
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