As the US Senate prepares to vote on the second version of the Wall Street bailout bill, the Wall Street Journal reports that changes to the bill, including an increase to federal deposit insurance limits and several tax breaks, are expected to see it pass.

“The Senate bill would temporarily allow the Federal Deposit Insurance Corp. to borrow unlimited amounts of money from the Treasury Department in connection with the larger government deposit coverage that would extend until the end of next year.

“This is important because it would increase the backstop that the FDIC has to make sure that insured depositors can be repaid if their bank fails.”

Read the full story here.

Peter Fray

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