by John McCormick, updated
With savers increasingly worried about their money, Sen. Barack Obama and Sen. John McCain called today for an increase in federal deposit insurance from its current cap of $100,000 to $250,000.
In a statement, the Democratic presidential nominee said the move would "potentially broaden support" for a proposed government bailout plan that failed to pass in the House on Monday, triggering the largest one-day point drop by the stock market in history.
Obama said increasing the maximum for government insurance from the current $100,000 would help ease some concerns in the economy.
"While that guarantee is more than adequate for most families, it is insufficient for many small businesses that maintain bank accounts to meet their payroll, buy their supplies, and invest in expanding and creating jobs," he said. "The current insurance limit of $100,000 was set 28 years ago and has not been adjusted for inflation."
Speaking on CNN's "American Morning," McCain said he recommended to President Bush on Tuesday morning that the limit on federally insured deposits be raised to $250,000.
Obama said the proposed increase in the FDIC limit should be part of the whatever new proposal Congress fashions. He said he would be talking to congressional leaders today about his proposal.
Under current limits, FDIC insurance guarantees bank deposits of up to $100,000. But if a bank fails, deposits above that limit are not necessarily safe.
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Comments
It appears that Senator Obama did not want the "bailout" package to become law!
His two closest allies in Congress are Jesse Jackson Jr. and Bobby Rush.
Both of them voted no on the package.
If Obama desired it to pass he would of contacted them and they would of voted yes.
So much for Obama's leadership.
Posted by: Pat H | September 30, 2008 8:57 AM
The Republicans wouldn't know leadership, if it were in the White House, for the last 8 years !! If it were, we wouldn't be in this mess and that even speaks to, what went before, President Bush, entered Office !!I If he had a modicum of leadership ability, he would have headed off this Banking Scandal of 2008 and, he certainly would not have made the most serious and devastating blunder in our history, the War and Occupation of the Oil Fields of Iraq. It has destroyed that nation and, now, at the cost of our own national infrastructure, we are re-building theirs !! If that is leadsership, have I a bridge to nowhere, to sell to you !!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.
Posted by: Don Fitzgerald, Chicago | September 30, 2008 10:40 AM