U.S. Treasury Secretary Janet Yellen said during an appearance before the Senate Appropriations Committee that federal bank regulators were not considering any plans to insure all U.S. bank deposits.
On Tuesday, while speaking to the American Bankers Association, Yellen signaled that U.S. regulators are looking into a way to guarantee all bank deposits.
One idea being discussed is a tiered pricing system where depositors would pay extra to guarantee deposits over $250,000.
- On Wednesday, Yellen said there could be reasoned discussions on whether the current $250,000 limit for insured deposits should be lifted as part of long-term systemic reforms.
- Yellen noted that currently, the Biden Administration was not considering increasing the deposit insurance.
- Yellen added that uninsured deposits above $250,000 could be protected only if the failed bank posed a systemic risk to the financial system.
