Bank Deposits & Money-Market Funds Insurance & the Bill

Minimum FDIC banking insurance amounts, used to be greater in 'constant
dollars' sevral yearsago. The Senate amendment raises the level to just
over the current 'constant value' of 2008 dollars (when expressed in
1992 dollars - the amount of $150,000 equals approximately $220,000
today). Ithelast fewyears,the amounthas beenheld to $150,000, even
aftter combining the old FSLIC insured deposits; and the number of
deposits insured per person has been frequently addressed, and is now
one per bank.

The Administration has also proposed insuring private individuals hedge
or money fund accounts. Again, the objective is to avert 'runs'&
'sales" -- to keep the money in the bank or thesecurities markets; and
to avoid private depositors 'means to live' vanishing in a 'flash'
evaporation.

That occurs in many societies where the bank lends the deposits to the
securities markets in a style like investment banking & underwriting.
Maintaining that base asset value is critical - and a basic safeguard
of the post-depression New Deal : US insured deposits--which may not be
invested in the stockmarket.
In a consumer society---the latter - if lost - would be doom and sure
road to severe recession.

Hence - assuring bank depositors of asset safety would join two-fold
with money-market funds guarantees & insurance. The Glass-Steagall
division of insured/un-insured banking no longer has most of the
depositors sleeping with the lambs and holding their
daily-weekly-monthly-yearly cash.

Depositors and banks fund the insurance with subsidized premiums.

Again, with confidence.. please pass the Bill.