30 September 2008

Short Take; FDIC asks to boost its per-depositor ceiling

In one of the few moves that are concretely, definitely, obviously aimed at making you and me, the average schmo on the street a little more confident that we're not going to be standing in lines for soup, the several people, including both candidates, have spent today babbling about the idea of the FDIC raising its per-depositor ceiling from $100,000 to $250,000.

Now, the word via the NyTimes is that the FDIC are themselves asking for that authority.

More later tonight or tomorrow.

2 comments:

chesther said...

I was skeptical about this, in part thinking that the average Joe who has more than $100K in cash is doing better than the average Joe.

But the analysis on NPR tonight pointed out that this also affects businesses that could legitimately may need to keep between 100K and 250K cash on hand for things like, say, payroll or buying inventory or such, and having to split it between multiple banks would have major suckage for them.

So this is another one that's really for business, but definitely for Main St more than Wall St.

Sign me up.

Uncle Mikey said...

I would also point out that the limit hasn't been raised in 28 years, while inflation has gone up considerably. I would say this move is overdue, regardless of the crisis that spurred it.