Lawmakers consider raising FDIC insurance limit for savings deposits.

Lawmakers are considering raising the FDIC insurance limit, currently set at $250,000, to stabilize the banking sector and prevent future bank runs. Advocates argue that a higher insurance cap would help small businesses operate and make payroll, among other things that would affect everyday workers. However, opponents argue that a sweeping deposit guarantee would encourage banks to engage in riskier behavior with customers’ money and might essentially reward irresponsible behavior. The FDIC insurance limit has been raised seven times since 1950, and officials will have to take into account the tradeoff between moral hazard and policy changes when considering scrapping the limit altogether.