Treasury Department officials are considering ways to temporarily expand federal guarantees on all bank deposits in case the crisis gripping the banking industry worsens, according to a new report.
Bloomberg News reported late Monday that officials are studying whether regulators could have emergency authority to temporarily expand Federal Deposit Insurance Corp. coverage above its $250,000 cap without needing approval from Congress.
Sources told Bloomberg that while such a move is not seen as necessary yet, officials want to be prepared for a worst-case scenario in case there are more runs on banks.
Last week, federal regulators said depositors of failed Silicon Valley Bank and Signature Bank would have “full access to all of their money,” in an effort to reassure investors and the public.
The possibility of unlimited deposit insurance has been raised in Congress recently, though how to pay for it remains to be seen.