Deposit Insurance – Page 2

Fed Vice Chair Calls Silicon Valley Bank a ‘Textbook Case of Mismanagement’

The Federal Reserve’s top bank cop blamed Silicon Valley Bank’s leaders, while previewing the cental bank’s review of its faulty oversight.

Proposals for more scrutiny of the financial sector are meeting resistance from industry and Congress.

While some executives said money wasn’t being pulled from their small and midsize banks, the “too big to fail” giants attracted business customers.

The government only insures deposits of less than $250,000, but there is precedent for lifting that cap amid turmoil. It could happen again.

It may not have been necessary, but it won’t do much harm, either.