Calls for Raising FDIC Deposit Cap and Expanding Deposit Guarantee Intensify.
Lawmakers, academics, and some in the financial industry are debating whether the FDIC deposit cap, which hasn't been raised since 2008, needs to be increased or abolished altogether. Regulators recently guaranteed all customer deposits, even those above $250,000, at two failed banks, leading to confusion about the limit's effectiveness. Some argue that the US should scrap the limit, while opponents argue that insuring all deposits would give banks too much license to take risky bets with depositor money.