A recent Rasmussen survey revealed that while 87 percent of Americans support FDIC deposit insurance, 34 percent maintain that the insurance is too high at $250,000 and 22 percent say the insurance should be higher.
Before the financial crisis in 2008, which led legislators to raise the deposit insurance limit to $250,000, deposit insurance remained at $100,000 for 28 years prior. In 2010, regulators made the $250,000 limit permanent, eCreditDaily reports.
Many Americans, however, are unaware of recent changes to bank-deposit protection. At the end of last year, regulators allowed unlimited insurance coverage for noninterest-bearing transaction accounts mandated under the Dodd-Frank Act to expire. Such deposits are now aggregated with any interest-bearing deposits a customer holds in the same category, and the FDIC backs total deposits up to $250,000.
The survey, which polled 1,000 adults across the U.S., also found that 50 percent of Americans favor a plan to break up America’s 12 largest banks, which control nearly 70 percent of the banking industry, while 23 percent oppose the plan and another 27 percent remain undecided, according to eCreditDaily.
Under the Dodd-Frank Act, the FDIC has the authority to take control of and wind down failing financial giants, including nonbanks, to avoid another taxpayer-funded bailout.