Tuesday, April 13, 2010
FDIC Extends Business Insurance Program
The business deposit insurance is unlimited as opposed to the generic 250,000 dollar deposit insurance that most of us have become accustom with.
The program is significant to the economy and more directly to the small banking industry because it assures small business owners that they are safe. Otherwise business owners may immediately with drawl significant accounts from small banks they feel may be in bad shape.
Though the banking industry appears to be in much better shape and on the right track there is no doubt there is still some risk in the indust5ry as things are still shaky due to loan defaults and foreclosure.
To date since 2008 there have been over 200 bank failures across the nation. A third, 70 approximately, have been small 1 – 2 branch banks.