– Yellen To Reassure World That “Treasury Is Committed” To Bailing Out Regional Bank Depositors:
The sound and fury of demands for universal deposit insurance are growing with Bill Ackman and Elon Musk the latest to join the calls for this ultimate step and as we detailed last night, Bloomberg reports Washington is studying just how to guarantee all $18 trillion in US deposits (with just $125 billion in the FDIC’s Deposit Insurance Fund).
“US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis.”
But since US Treasury Secretary Janet Yellen’s embarrassing and confusing comments about who gets saved and who doesn’t (and who decides) during testimony before the Senate Finance Committee, it appears Washington thinks trotting out the little old lady once more to reassure nervous depositors is the right path back to financial stability.
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