Banks want Federal Deposit Insurance to be expanded

A coalition of banks has been calling for a means to temporarily expand Federal Deposit Insurance Corp's coverage for all deposits to stop a potential financial crisis, according to the U.S. authorities.

People with knowledge of the talks said that Treasury Department staff is looking into whether federal regulators have enough emergency authority to temporarily insure deposits over the $250,000 cap on most accounts with no formal consent from Congress.

The pool of funds is usually used to buy or sell currencies and to provide financing to foreign governments. The report said that the fund has been used as a backstop for emergency lending facilities provided by the central bank in recent years.

A Treasury spokeswoman said in a statement that Americans can trust in the safety of their deposits because of decisive recent actions, the situation has stabilized, deposit flows are improving and the situation has stabilized due to decisive recent actions.

While some lawmakers have indicated they are considering changes to the current $250,000 FDIC insurance cap, a lot of House conservatives have voiced their take against a 100% guarantee.

The House Freedom Caucus said in a statement that any universal guarantee on all bank deposits, whether implicit or explicit, enshrines a dangerous precedent that encourages irresponsible behavior to be paid for by those not involved in the rules.

Musk Remarks: Replying to a tweet about the story, Tesla Chief Elon Musk said it is absolutely necessary to stop the bank runs.

Paul Krugman believes that Fed Has Space To Exercise Discretion: Don t just do something: Sit there, Paul Krugman believes that Fed Has Space To Exercise Discretion: