FDIC Extends Business Insurance Program

The FDIC Insurance for 100% of all business deposits will be extended for at least another six months if not longer. I predict that the program will be here through at least part of 2012. However the serious talks and sources that I have seen are saying mid 2011.

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.

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