United States: an increase in the ceiling on insured deposits to save the banks?

(Boursier.com) — The United States would consider ways to guarantee all bank deposits if the crisis worsens, according to Bloomberg. The agency quotes people familiar with the matter as saying that Treasury staff are therefore studying how regulators could use emergency authority to temporarily guarantee deposits of more than $250,000 in most accounts. without formal congressional approval. Officials do not consider such action necessary, but are developing a strategy in case the situation worsens. Elon Musk, reacting on Twitter on this subject, is also of the opinion that such a measure is essential to avoid new ‘bank runs’. Previously, activist investor Bill Ackman, who claimed to have no financial interest in the case, stressed the urgent need to guarantee all deposits to avoid contagion, after the successive falls of Silvergate, Silicon Valley Bank and Signature Bank in the United States and the rescue of Credit Suisse.

Meanwhile, according to the New York Times, discussions to buy First Republic Bank, currently considered one of the most weakened American medium-sized banks following massive withdrawals, would at best only be at an early stage. Sources familiar with the matter told the NYT that even if they gave First Republic $30 billion in deposits last week, America’s biggest banks are unlikely to bail out the institution after talks about selling it. stake in First Republic had evolved into attempts to save it. People familiar with the discussions told the NYT that First Republic management believes the bank will be able to weather further turmoil, with at worst weeks rather than days to raise capital or sell. People with knowledge of the matter tell The New York Times that over the past few weeks, First Republic had lost…$70 billion in deposits, or nearly half of its total depositor base at the end of the year. ‘last year. The case seems to be of particular concern to Jamie Dimon, boss of JP Morgan Chasewhich had organized pooled deposits from 11 major banks and would now work to arrange a possible bailout…