Wednesday, July 30, 2008
Calming the Financial Markets
The Congress, Federal Reserve and Treasury Department want to calm the financial markets. One thing that would go a long way to calming these markets is to insure that any and all depositors are fully insured. This would reduce depositors fear that they will not be insured if their accounts are over $100,000 and would also reduce the banks bureaucracy regarding depositors having multiple accounts. This may also strengthen the banks deposits, because depositors wouldn’t have to move their money elsewhere in order to insure that they’re covered by the FDIC.