The FDIC’s deposit-insurance limit

Dick Taffe — Wed, 16 Jun 2010 20:24:08 +0000

Congressional negotiators working out difference between the House and Senate financial reform bills are hammering out compromises right and left. One would permanently (and retroactively to January 2008) move from $100,000 to $250,000 the deposit insurance on individual bank accounts. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, doesn’t think the raised limit is a good idea.

“Permanently raising the federal deposit insurance ceiling from $100,000 to $250,000 when the Federal Deposit Insurance Fund is over $20 billion in the red is irresponsible. By raising taxpayer-funded deposit insurance coverage … it seems the [banking] lobbyists’ messages are getting through loud and clear.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

FDIC floats bank-reform proposals

Dick Taffe — Tue, 11 May 2010 22:43:12 +0000

The Federal Deposit Insurance Corp. is proposing that the top 40 U.S. banks — with assets totaling $8.3 trillion — submit “living wills” to show how they could be split off from parent companies and wound down. In parallel with Congressional reform efforts, the FDIC also is proposing that those selling securitiezed assets retain 5% of the risk on those assets. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, says the FDIC’s proposal preempt several sister regulatory agencies.

“If the FDIC was attempting to make the case for federal regulatory consolidation, its ill-timed proposals hit the mark.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

BU Now » Federal Deposit Insurance Corp.

The FDIC’s deposit-insurance limit

FDIC floats bank-reform proposals