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| | Modifying Federal Deposit Insurance |
 | | Indeed, the FDIC has found that the increase in deposit insurance coverage from $40,000 to $100,000 in 1980 contributed to the losses suffered by the deposit insurance program. |
 | | The Congress is considering a number of changes to federal deposit insurance, including proposals to increase the real level of insurance coverage, charge all banks and savings associations premiums for deposit insurance, authorize credits that some banks could use to pay premiums, change the designated reserve ratio, and specify a required level of premiums. |
 | | To justify increasing insurance coverage, advocates point to the erosion of the real value of coverage by inflation, greater convenience to depositors who now divide their money into multiple accounts, the possibility of attracting more deposits to all banks and thrifts, and more secure protection for municipal deposits. |
| www.cbo.gov /showdoc.cfm?index=6342&sequence=0 (3457 words) |
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