FDIC Calls for Review of US Bank Deposit Insurance System

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The process is launching fresh debate over whether an expansion of government protections is appropriate. The Federal Deposit Insurance Corp. (FDIC) has published a comprehensive overview of the federal system this week, sparking debate once again regarding the need – or lack thereof – for additional government protections on bank deposits. The overview is also taking another look at how much additional coverage might be required. This review represents the third report the FDIC has published since the collapse of Silicon Valley Bank (SVB) and Signature Bank earlier this year.…

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Lawmakers consider raising FDIC deposit insurance cap after SVB collapse

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The Silicon Valley Bank collapse has some believing that $250,000 is not enough protection. Some lawmakers in the United States consider the Silicon Valley Bank collapse to be an eye-opening experience and are now tinkering with the idea of raising the Federal Deposit Insurance Corporation’s coverage cap of $250,000 in case of another catastrophic bank failure in the future. Raising the FDIC cap would provide greater protection to the customers of a failed bank. “I think that lifting the FDIC insurance cap is a good move,” said Senator Elizabeth Warren…

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Google Wallet makes insurance news with FDIC coverage

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The mobile payments solution from the search engine and tech giant now has government protection. Google Wallet, a smartphone based payment solution has now just become a little bit safer for customers in the United States who would like to ensure that their funds are secure, as there is now insurance news showing that government coverage will be protecting them. The Federal Deposit Insurance Corporation (FDIC) will now be providing coverage to funds held in the mobile wallet. A report recently published by Yahoo Finance announced this insurance news, in…

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FDIC files lawsuit against large banks responsible for small bank closures

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Large banks accused of causing the failure of Illinois banks The Federal Deposit Insurance Corp. (FDIC) has filed lawsuits against several large banks this week after seizing control of two smaller banks in Illinois. These banks failed in May of 2009, but the FDIC only recently filed civil suits against the banks once its investigation into the matter came to a conclusion. The lawsuit names Citigroup, JPMorgan Chase, Bank of America, Credit Suisse, Deutche Bank, Royal Bank of Scotland, UBS and HSBC as defendant in the case. FDIC aims to recover…

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Federal regulators close banks in Florida, Georgia and Pennsylvania, each putting a dent in the nation’s insurance fund

Federal regulators from the Federal Deposit Insurance Corporation (FDIC) seized banks in Florida, Georgia and Pennsylvania late last week. The seizures mark the first bank failures of 2012, continuing an unfortunate trend that began with the economic recession of 2008. Hundreds of banks have fallen prey to closures during the economic crisis. Last year, 92 banks were shut down by the FDIC, markedly lower than the 157 closures seen in 2010. Regulators expect that the number of closures will be lower this year than it had been in previous years.…

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