Obama, McCain Endorse FDIC Guarantee Expansion

Senators Obama and McCain have arrived at the idea of raising the FDIC deposit insurance limit from $100,000 to $250,000. Obama introduced the idea in a statement this morning, and McCain, in a round-robin series of interviews, made the same suggestion. The FDIC already guarantees retirement accounts up to $250,000.

Of course, the FDIC itself has only about $50b in reserves, so Congress would have to recapitalize the FDIC in the event of a series of bank failures.