I think some folks are rightfully curious how the depositors are being fully protected here, given that FDIC only insures up to $250,000.
But really there should be no limit on FDIC insurance. Depositors should not be categorized as risk takers. Joe Schmoe should never have to concern himself with where he banks, or where his company payroll banks, for that matter. Telling depositors to take responsibility and disperse their funds across as many banks as possible is...silly. These aren't investors in bonds or stocks. These are cash accounts.
Yellen is 100% doing the correct thing here. And the precedent being set makes logical sense.
But really there should be no limit on FDIC insurance. Depositors should not be categorized as risk takers. Joe Schmoe should never have to concern himself with where he banks, or where his company payroll banks, for that matter. Telling depositors to take responsibility and disperse their funds across as many banks as possible is...silly. These aren't investors in bonds or stocks. These are cash accounts.
Yellen is 100% doing the correct thing here. And the precedent being set makes logical sense.