As we've seen a lot that takes place on Wall Street comes from perception as well as real numbers so I think it was a smart move for Obama to ask that the FDIC insurance on our bank accounts get raised to 250K. It gives people confidence in their banks and will ease a little tension there. What would happen if everyone withdrew their money from from their bank out of fear? Talk about a nightmare. He needs to lead on the economy and this is a good step.
"The majority of American families should rest assured that the deposits they have in our banks are safe," Obama said in a statement put out by his presidential campaign.
"That is why today, I am proposing that we also raise the FDIC limit to $250,000 as part of the economic rescue package - a step that would boost small businesses, make our banking system more secure and help restore public confidence in our financial system."
The chairman of the House Financial Services Committee has told lawmakers that a federal bank regulator will seek authority to increase the deposit insurance limit to a level above its current $100,000, said a source familiar with the chairman's thinking.
Representative Barney Frank, a Massachusetts Democrat, has told lawmakers of his committee that Sheila Bair, chairman of the Federal Deposit Insurance Corporation, will soon request the authority to boost the level of insured deposits, the source said.