US STUDIES A GUARANTEE FOR ALL BANK DEPOSITS

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Bloomberg has published an article that describes the possibilities of how all bank deposits could be guaranteed if the crisis expands.


The article reads that ´´US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis.´´


´´Treasury Department staff are reviewing whether federal regulators have enough emergency authority to temporarily insure deposits greater than the current $250,000 cap on most accounts without formal consent from a deeply divided Congress, according to people with knowledge of the talks.´´


Meanwhile, there are still concerns over regional US banks. First Republic shares tumbled as much as 50% on Monday and were last down about 39%. Additionally, the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, and the Swiss National Bank are taking coordinated action to enhance the provision of liquidity via standing US Dollar liquidity swap line arrangements.

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