Friday, October 10, 2008

U.S. Considering Backing Bank Debt... Removing Deposit Insurance Limits Also on Table

The Wall Street Journal is reporting that the U.S. is weighing backing bank debt. Also, the removal of deposit insurance limits is also on the table.

Here's a partial article from the WSJ:

"The U.S. is weighing two dramatic steps to repair ailing financial markets: guaranteeing billions of dollars in bank debt and temporarily insuring all U.S. bank deposits.
If the two moves come to fruition they would mark the government's most extensive intervention yet in the financial system, as officials ponder increasingly far-reaching measures to stem the sprawling crisis.

The top economic officials of the Group of Seven leading industrial nations will meet starting Friday in Washington where they intend to discuss a proposal from the U.K. government to bolster bank lending. Problems in the credit market have led to ..."

Here's a link to the article. Unfortunately, you'll need a WSJ online account to access the full article.

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