Deposit Dollars

While distasteful, the Fed/Treasury/FDIC troika had no choice but to protect all bank deposits even in accounts with balances exceeding the $250,000 insured threshold. Absent that guarantee, depositors with holdings exceeding $250,000 would have raced to withdraw their excess monies, causing bank runs everywhere. Congress should now meaningfully increase the deposit insurance threshold as only 50% of deposits at commercial banks are insured. This is a needless source of instability.