Consumer Law

The Irrelevant Increase in the FDIC Insurance Cap

By Brian Wolfman

Adam Levitin over at Credit Slips has this nice post about the irrelevancy of raising the FDIC insurance on bank deposits from $100,000 to $250,000 as part of the bailout bill. Sure, 250K in insurance might help in the rare instance where someone mistakenly leaves more than 100K in one failing bank (rather than spreading his or her money among several institutions), but the increase will (obviously) affect almost no one, and, besides, it will do nothing to ameliorate the current credit crisis.

Full post as published by CL&P Blog on October 13, 2008 (boomark / email).