RENO, Nevada (AFP) — Democrat Barack Obama Tuesday said federal deposit insurance for US families and small businesses should be increased, in a bid to persuade more lawmakers to back a Wall Street bailout.
Obama said he would discuss the idea with leaders in Congress on Tuesday, a day after the House of Representatives dramatically rejected a 700-billion-dollar plan to rescue the reeling finance sector.
"Yesterday, within the course of a few hours, the failure to pass the economic rescue plan in Washington led to the single largest decline of the stock market in two decades," Obama said in a written statement.
"While I, like others, am outraged that the reign of irresponsibility on Wall Street and in Washington has created the current crisis, I also know that continued inaction in the face of the gathering storm in our financial markets would be catastrophic for our economy and our families.
"At this moment, when the jobs, retirement savings, and economic security of all Americans hang in the balance, it is imperative that all of us -- Democrats and Republicans alike, come together to meet this crisis.
Obama suggested increasing federal deposit insurance for families and small businesses who have money saved in US banks from 100,000 dollars to 250,000 dollars.
The Illinois senator said such a step would "boost small businesses, make our banking system more secure, and help restore public confidence in our financial system."
The current federal deposit insurance limit was set 28 years ago and has not been adjusted for inflation, he said.
Copyright © 2009 AFP. All rights reserved. More »
