Feds mull unlimited deposit guarantees if bank crisis worsens: report
By Mike Murphy
Treasury Department officials are considering ways to temporarily expand federal guarantees on all bank deposits in case the crisis gripping the banking industry worsens, according to a new report.
Bloomberg News reported late Monday that officials are studying whether regulators could have emergency authority to temporarily expand Federal Deposit Insurance Corp. coverage above its $250,000 cap without needing approval from Congress.
Sources told Bloomberg that while such a move is not seen as necessary yet, officials want to be prepared for a worst-case scenario in case there are more runs on banks.
Also see: The end of the 'everything bubble' has finally hit the banking system. Credit Suisse and SVB might be just the first of many shocks
Last week, federal regulators said depositors of failed Silicon Valley Bank and Signature Bank would have "full access to all of their money," in an effort to reassure investors and the public.
The possibility of unlimited deposit insurance has been raised in Congress recently, though how to pay for it remains to be seen.
Read more:Unlimited deposit insurance: A radical idea that's gaining steam in Congress
-Mike Murphy
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 20, 2023 21:58 ET (01:58 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
, 
, 
Copyright ©2023. All rights reserved.