Obama Wants to Hike Deposit Insurance

Calls for revived bailout to include increase to $250K from $100K
By Clay Dillow,  Newser Staff
Posted Sep 30, 2008 8:22 AM CDT
Democratic presidential candidate Sen. Barack Obama D-Ill., waves during a rally at Mountain Range High School in Westminster, Col. Monday, Sept. 29, 2008.   (AP Photo/Alex Brandon)
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(Newser) – Barack Obama today proposed to revive the $700 billion bailout lying bloodied on the House floor with a provision increasing federal insurance to $250,000 from the current $100,000, Politico reports. The presidential hopeful called it “a step that would boost small businesses, make our banking system more secure, and help restore public confidence in our financial system.”

“The current insurance limit of $100,000 was set 28 years ago and has not been adjusted for inflation,” Obama said in a statement, noting that “while that guarantee is more than adequate for most families, it is insufficient for many small businesses that maintain bank accounts to meet their payroll, buy their supplies, and invest in expanding and creating jobs.”