Any chance of the FDIC insured deposit level going back down to $100K?
January 6, 2010 12:23 PM Subscribe
FDIC insured deposits: any arguments for going back down to $100,000 anytime soon?
posted by midatlanticwanderer to Work & Money (11 answers total) 3 users marked this as a favorite
In mid-2009, President Obama signed into law a bill to extend the $250,000 insured deposit limit until 2013. My understanding is that this limit was increased from the $100,000 we're all been used to during the financial crisis when there was serious doubt about the health of many of the nation's largest banks. Now that the immediate danger seems to have ebbed, especially with many banks paying back the money they received under TARP, are there any credible/rational arguments for returning the insurance limit for individuals back to the $100,000 level?
I understand that several smaller banks continue to fail, but does the $250K limit really help enough people that it outweighs returning to the $100K limit, thus limiting the FDIC's responsibility for those deposits?