On Wednesday the Senate passed Bill S.896
to prevent mortgage foreclosures and enhance mortgage credit
availability. One of the provisions of this bill is the extension of
the FDIC's $250,000 deposit insurance limit. The bill extends the temporary $250,000 limit through 2013.
According to the bill summary S.896:
Amends
the Federal Deposit Insurance Act (FDIA) and the Federal Credit Union
Act (FCUA) to: (1) increase deposit insurance coverage permanently to
$250,000; and (2) increase the borrowing authority of the Federal
Deposit Insurance Corporation (FDIC) and the National Credit Union
Administration (NCUA).
The bill more than triples the authority of FDIC to borrow from Treasury from the $30B ( which were set in 1991) to $100B
During 2008, 25 banks with $373.6 billion in total assets failed
in the United States, and several others were strongly encouraged
by the regulators to merge with other banks. Source: Jones Day
Though May 8, 2009, 33 banks failed
in the United States. Source: FDIC website.
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