Raising FDIC’s deposit protection limit should be considered -U.S. Senate majority leader

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“Raising the $250,000 FDIC limit is a serious proposal and should be carefully studied,” Schumer told reporters at the U.S. Capitol. “It’s important because it will strengthen smaller banks and prevent depositors from putting their money into larger banks.”

But the issue carried “a moral hazard which could have significant impact on our economy in the long run,” Schumer added. “This is not an easy question, and will require careful consideration.”

Schumer’s comments come as Congress weighs potential action following the recent collapse of two U.S. banks that triggered turmoil in financial markets.