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It's actually happened before that. Limit was retroactively raised from $100k to $250k after IndyMac collapsed. But that was for everyone by law (first temporar
by Scoundreller 4y ago
It's actually happened before that. Limit was retroactively raised from $100k to $250k after IndyMac collapsed. But that was for everyone by law (first temporarily by https://archive.fdic.gov/view/fdic/3388 https://archive.fdic.gov/view/fdic/3388 then by Dodd-Frank retroactively & permanently).
Even then I thought it was a bad idea because it discouraged depositors from spreading around their assets.
Whether we'll see them treat future failures like SVB or not, TBD!
- smcin 4y agoFDIC historical limit was set/raised eight times, essentially a bit higher than tracking inflation: https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation#Historical_insurance_limits https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corp... FDIC(+NCUA) are allowed revise the limit every 5 years, next is 2025. Unless Congress acts sooner. Should the FDIC limit be indexed on inflation?
- Scoundreller 4y agoThat would make more sense. But were any of the pre-2008 increases retroactive?
- smcin 4y agoNot sure what you mean, but they were ad-hoc and retroactive to bank failures, not explicitly to inflation numbers on a five-year schedule. Allowing FDIC limit to be revised for inflation is a new regulation.