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The FDIC said in its report that switching to a “targeted coverage” approach, where business accounts get more coverage than the current cap, would be the best option for financial stability. Such a change, however, would require congressional action. Other options include maintaining coverage as is, or switching to cover all deposits, the FDIC said.
The collapses and the government’s response “raised fundamental questions about the role of deposit insurance in the United States banking system,” FDIC Chairman Martin Gruenberg said in a statement. “This report is an effort to place these recent developments in context of the history, evolution, and purpose of deposit insurance.”
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