How could this help consumer sentiment regarding the banking industry?
Quite frankly one of the largest problems our financial system has right now is that people are concerned that their money is not safe and they have begun pulling money out of their financial institutions. In the case of Washington Mutual, depositors pulling money out of their accounts was the straw that broke the camel’s back and caused the bankruptcy of the massive banking firm. An increase in the insured deposit level will help Americans understand that the FDIC is fully prepared to insure that the money they deposit, so long as it is an FDIC approved bank, will be fully insured. It is also important to remember that an increase like this will help small businesses significantly. While many individuals likely have less than $100,000 in their account, most small businesses have more than that. Small businesses have been much more at risk during recent bank failures than individuals, and this should help improve confidence among small business owners. To me it seems that an increase i
