Obama proposes increasing bank deposit insurance

[September 30, 2008]  WASHINGTON (AP) -- Democratic presidential candidate Barack Obama said Tuesday the government should extend the federal deposit insurance limit from $100,000 to $250,000 to help small businesses as part of a revamped economic rescue plan he called essential to averting a catastrophe.

Obama said in a statement that Congress should not start over as lawmakers consider their next move in the wake of the House's rejection of a bipartisan plan backed by congressional leaders and the Bush administration.

"Given the progress we have made, I believe we are unlikely to succeed if we start from scratch or reopen negotiations about the core elements of the agreement. But in order to pass this plan, we must do more," he said.

Obama said the current federal guarantee of up to $100,000 in bank deposit insurance, a limit set nearly 30 years ago, is adequate for most families but insufficient for many small businesses. Raising the limit to $250,000 "would boost small businesses, make our banking system more secure and help restore public confidence in our financial system," he said.

Obama said jobs, retirement savings and economic security for all Americans hang in the balance as Congress considers what to do next.

"While I, like others, am outraged that the reign of irresponsibility on Wall Street and in Washington has created the current crisis, I also know that continued inaction in the face of the gathering storm in our financial markets would be catastrophic for our economy and our families," he said.

___

On the Net:

Obama campaign:
http://www.barackobama.com/index.php

McCain campaign:
http://www.johnmccain.com/

[Associated Press]

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.