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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

(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.”

Democratic presidential candidate Sen. Barack Obama D-Ill., waves during a rally at Mountain Range High School in Westminster, Col. Monday, Sept. 29, 2008.
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)
Democratic presidential candidate Sen. Barack Obama D-Ill., points as he gets in his car at the airport in Reno, Nev., Monday, Sept. 29, 2008.
Democratic presidential candidate Sen. Barack Obama D-Ill., points as he gets in his car at the airport in Reno, Nev., Monday, Sept. 29, 2008.   (AP Photo/Alex Brandon)
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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. - Sen. Barack Obama, on the bailout plan

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