Correspondent Blog
Tag: Moral Hazard
05/08/23
Should Congress Increase FDIC Insurance Limits?
In the wake of regional bank failures, one potential answer to equity shorting and bank runs is having the FDIC increase deposit insurance. The regulators are considering three options: raising the limit above $250k, raising the cap for only certain accounts (such as banks’ business accounts), or eliminating the cap entirely. Increasing insurance coverage on…