"Revamping Deposit Insurance: Solutions for Safer Savings"

The current federal deposit insurance system needs to change to avoid a de facto nationalization of the US banking system, according to Karen Petrou, managing partner at Federal Financial Analytics. Petrou suggests that the $250,000 limit on deposit insurance should be expanded to protect operational deposits that companies cannot keep below the limit, and that individual savings accounts opened in the name of a natural person or family should have no upper insurance limit. These changes would provide ample protection for those who need it and market discipline for those who don’t.