Raising FDIC limit may not spark broad rally for stocks, says Barclays

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 51%

South Africa News News

There's no evidence higher FDIC insurance would spark a big jump for stocks even as markets cheer government support for bank deposits, says Barclays

, the top Democrat on the House Financial Services Committee, said Congress should think about bumping up the limit.said as a rookie, he spread his money across a number of banks because of the FDIC's insurance limit.

"In the immediate aftermath of the limit increase, S&P experienced wildly different paths, suggesting that raising the limit was not always successful in soothing the equity market," Gupta wrote. "However, there's no evidence that the limit raise itself catalyzed the move. Indeed, the eventual relief rally is in line with what is expected given the magnitude of the fallout preceding the insurance cap lift," Gupta said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

FDIC to market failed Signature Bank loan portfolio in the summerFederal regulators said late Monday they expect to begin marketing failed Signature Bank’s loan portfolion later this summer. The portfolio, worth about $60...
Source: MarketWatch - 🏆 3. / 97 Read more »