DESPERATE TIMES

U.S. Looks Into Guaranteeing All Bank Deposits to Avoid Possible Crisis: Report

It’s not yet clear if such extreme action will be required.

U.S. Treasury Department staff are currently trying to establish if they have emergency powers in place to be able to guarantee all bank deposits in the event that such an intervention becomes necessary to stave off a massive financial crisis, according to a report. Bloomberg says that officials are looking at how they could temporarily widen Federal Deposit Insurance coverage to deposits exceeding the current $250,000 limit without needing sign-off from Congress, though such action is not seen as necessary just yet. Mid-size banks have called for more government support after the collapse of Silicon Valley Bank triggered major unrest in the banking system earlier this month.