U.S. officials considering expanding FDIC insurance to all deposits

The U.S. officials are looking at ways to temporarily expand Federal Deposit Insurance Corp FDIC coverage to all deposits, Bloomberg News reported on Monday.

The report said that U.S. Treasury Department staff are looking into whether federal regulators have enough emergency authority to insure deposits above the $250,000 cap on accounts without the consent of Congress.

The report said that the Treasury Department'sTreasury Department's authority to take emergency action and lean on the Exchange Stabilization Fund would be used in a legal framework that is being looked at for expanding FDIC insurance.

Authorities don't think such a move is necessary, especially after regulators took measures this month to help banks keep up with any demands for withdrawals, but they are still developing a strategy out of due diligence in case the situation worsens, according to Bloomberg.

Due to decisive recent actions, the situation has stabilized, deposit flows are improving and Americans can trust in the safety of their deposits, a U.S. Treasury spokeswoman told Bloomberg.

Treasury had no immediate comment on the report when contacted by Reuters.