
After Hours Special: The Crisis in Banking
After Hours
Uncapped Deposit Insurance
The rise of digital banking has made it easier to move deposits around. The old rationale for capping how much deposits are insured at an individual institution doesn't really make all that much sense, Felix says. Once you have uncapped deposit insurance, bankers can do a lot of different things - so you have to match it with lots of regulation. But just we have to realize that it's going to come with a lot more regulation for regional banks and smaller banks which have until now not had that.
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