CFO Journal writes on FDIC Guarantee
The Wall Street Journal's CFO Journal writes "Ex-FDIC Chair Calls for Phase Out of Unlimited Deposit Guarantee" (separate subscription required), which says, "Former Federal Deposit Insurance Corp Chairman Sheila Bair said an abrupt end to the current unlimited insurance on non-interest bearing bank accounts at the end of the this year could rattle the banking system and put smaller institutions in danger. Bair, who left the FDIC in July 2011, was there for the beginning of the unlimited guarantee program during the financial crisis in 2008. She said in an interview with CFO Journal that the program was meant to be temporary, but a phase-out that staggers the end for small banks and large banks may be more stable for the banking system and the $1 trillion of corporate deposits currently protected under the guarantee. Right now, the program is slated to expire for all banks Dec. 31." Yesterday's Journal featured, "The $1 Trillion Balancing Act". It said, "A looming change in federal insurance on bank deposits is forcing corporate cash managers to reassess the safety of their banks and has them poring over their investment policies to determine how much money they can keep in any one institution."
